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Annual report 2019
Annual Report2019
3
Сontent
Message from the Chairman of the Board of Directors......................................................4
Banca Intesa in 2019...............................................................................................................................8General.information.about.the.Bank...............................................................................................................8Shareholders...................................................................................................................................................9Intesa.Sanpaolo............................................................................................................................................10Board.of.Directors`.report.on.the.results.of.the.Bank’s.development.in.priority.business.areas.......................12Financial.performance...................................................................................................................................13Ratings.........................................................................................................................................................17Bank’s.position.in.the.stock.market...............................................................................................................18
Business development in 2019........................................................................................................20Significant.transactions.in.2019....................................................................................................................20Services.for.corporate.customers...................................................................................................................21Small.and.medium.enterprises......................................................................................................................24Retail.business..............................................................................................................................................26Leasing.........................................................................................................................................................28Branch.network............................................................................................................................................29
Risk management...................................................................................................................................32
Social responsibility...............................................................................................................................38Corporate.values..........................................................................................................................................38HR.policy......................................................................................................................................................39Social.policy..................................................................................................................................................40Support.of.Culture,.Charity.and.Business.Projects.........................................................................................41
Corporate governance.........................................................................................................................46Management.bodies.of.the.Bank..................................................................................................................46Remuneration.for.members.of.the.Bank`s.management.bodies,.and.other.persons.accepting.risks................51Large.transactions.........................................................................................................................................54Related.party.transactions.............................................................................................................................54Report.on.dividends.payout..........................................................................................................................54Information.on.volumes.of.used.energy.resources.........................................................................................54
Development prospects in 2020.....................................................................................................56Corporate.block.development.......................................................................................................................56Developing.the.SME.business.sector.............................................................................................................57Retail.business.development.........................................................................................................................57Trade.finance.development...........................................................................................................................57
Report on Compliance with the Principles and Recommendations of the Corporate Governance Code.............................................................................................60
Consolidated financial statements prepared in accordance with International Financial Reporting Standards (IFRS).............................................................80
Annual accounting (financial) statements (RAS)...................................................................88
Details.........................................................................................................................................................108
4
The.penultimate. year.of. the.decade.has. confirmed. the. recent.global. trend..Russia.and. the.whole.world.are.exploring. life. in.a.new.economic.and.geopolitical. reality,.where. the.only.constant. is.unpredictability..Banca.Intesa.has.successfully.settled.down.in.this.challenging.environment.and.continues.developing.both.independently.as.a.Russian.bank.and.as.part.of.the.largest.Italian.banking.group.Intesa.Sanpaolo,.which.is.present.in.37.countries.
The.restoration.of.the.Russian.economy.growth,.combined.with.macroeconomic.stability.and.a.record.decline.in.inflation,.created.favorable.conditions.for.the.development.of.the.Bank’s.business.which.takes.advantage.of.the.current.market.situation.while.creating.a.reserve.for.the.future.
A.case.in.point.is.the.agreement.signed.with.the.Far.East.Development.Corporation.at.the.Eastern.Economic.Forum.in.September.2019,.which.enables.Banca.Intesa.to.participate.in.financing.of.some.projects.in.the.Far.East.Federal.District..Successful.interaction.with.the.Federal.Corporation.for.the.Development.of.Small.and.Medium.Enterprises.(SME.Corporation).has.also.made.a.positive.contribution.as.it.facilitated.mutually.beneficial.cooperation.in.various.fields.
The.world.events.have.also.directly.affected.the.Bank’s.business..This.includes.the.expansion.of.non-market.competition.methods,.like.sanctions.and.other.restrictions,.rate.wars.and.other.forms.of.political.pressure..This,.of.course,.had.a.negative.impact.on.the.business..However,.as.you.known,.when.one.door.closes.—.another.opens.
Inspired.by.this.idea,.Banca.Intesa.and.Intesa.Sanpaolo.Group.searched.for.new.dimensions.on.the.promising.Russian. market. and. were. successful.. This. factor,. combined. with. the. great. potential. of. Intesa. Sanpaolo.Group.in.international.projects.and.its.foreign.network,.enabled.Banca.Intesa.to.participate.in.international.financing.of.a.number.of.the.largest.Russian.corporate.clients,.such.as.Gazprom.PJSC.and.Russian.Railways.OJSC.
In.this.regard,.I.would.like.to.highlight.the.significant.expansion.of.interaction.within.the.Group.in.2019,.the.synergy.effect.of.the.coordinated.work.of.its.various.structures,.including.Banca.Intesa..The.establishment.of. even. closer. direct,. including. personal,. contacts. between. the. respective. divisions. of. Banca. Intesa. and.colleagues.from.the.parent.company.played.a.positive.role.through.the.visits.of.representative.delegations,.organization.of.business.trips,.and.in-depth.and.substantive.exchange.of.experience.
Message.from.the.Chairman.of.the.Board.of.Directors
Message from the Chairman of the Board of Directors
5
One.of.priority.areas.was.the.development.of.the.corporate.segment..The.total.volume.of.corporate.business,.including.documentary.transactions.and.lending.commitments.under.the.loan.agreements.concluded.at.the.end.of.the.year,.has.increased.by.62.%.in.2019.to.reach.approximately.RUB.52.billion.
The.client.base.has.been.expanded,.in.the.regions.ties.with.regular.customers.have.been.strengthened..The.Bank.was.actively.engaged. in.syndicated. lending,. including. large.transactions.with.Siberian.Anthracite.JSC,.Uralkali.PJSC,.Ural.Mining.and.Metallurgical.Company.OJSC,.Alrosa.PJSC..The.year.2019.stands.out.for.the.significant.expansion.of.the.Bank’s.presence.in.operations.with.transnational.corporations..
Important.focus.areas.include.trade.finance.and.documentary.business..In.2019,.Banca.Intesa.serviced.many.export-import.operations,.expanded.partnerships.with.counterparty.banks.around.the.world,.which.helped.to.improve.the.quality.of.our.services..We.offer.competitive.prices,.a.flexible.approach,.skillful.structuring.of.complex.transactions,.knowledge.of.the.market.and.consulting.support,.as.well.as.secure.and.easy.access.to.documentary.instruments.within.banks.and.overseas.offices.of.Intesa.Sanpaolo.Group.
Historically,. small. and. medium-sized. businesses. have. been. and. remains. one. of. the. Bank’s. priorities.. In.2019,. lending.was. increased. in. this. segment.of. the.Russian.economy,. including.guarantees.provided.by.SME.Corporation.and.the.surety.of.regional.guarantee.funds..The.amount.of.guarantees.issued.by.the.SME.Corporation.for.loans.granted.by.Banca.Intesa.under.the.Guarantee.Mechanism.Program.has.grown.by.6.8.times.since.2018..
In.the.retail.business,.much.attention.was.paid.to.improving.the.product.line,.which.also.gave.positive.results..However,.the.emphasis.was.placed.on.Private.clients,.with.new.dedicated.zones.opened.to.serve.these.clients.in.Moscow.and.St..Petersburg.and.staffing.increased..As.a.result,.the.deposit.portfolio.in.this.segment.has.increased.by.116.%.over.the.year.
As.part.of.its.liquidity.management,.the.Bank.conducted.efficient.transactions.with.government.securities.(federal.loan.bond).and.Bank.of.Russia’s.coupon.bonds.in.the.established.securities.market.
Much.attention.was.paid.to.leasing,.where.we.operated.through.our.100.%.subsidiary.Intesa.Leasing.JSC..Transactions.covered.14.regions,.with.Yekaterinburg,.Krasnodar,.Tomsk.and.Rostov-on-Don.being.especially.active..The.leasing.portfolio.was.centered.around.transactions.with.vehicles.and.special.equipment.
Much.of.Banca.Intesa’s.activity,.as.in.previous.years,.was.focused.on.the.support.of.numerous.public.business.events. to. promote. trade. and. economic. cooperation. with. Russia. in. the. current. challenging. international.context..The.central.event.was. the.XII.Eurasian.Economic.Forum,.which. took.place.on.October.24-25. in.Verona.(Italy)..The.forum.brought.together,.first.of.all,.the.leaders.of.the.largest.companies.from.Italy.and.Russia,.as.well.as.from.dozens.of.other.countries,.on.a.unique.discussion.platform.to.develop.business.ties..In.addition,.in.2019,.the.bilateral.and.multilateral.business.seminars.for.entrepreneurs.were.held.in.the.largest.cities.of.Italy,.as.well.as.in.Austria,.Belgium.and.Switzerland..They.also.took.place.in.Russia:.in.Krasnodar,.Yekaterinburg,.Barnaul.and.Nizhny.Novgorod.
Banca.Intesa.took.a.special.place.in.the.St..Petersburg.International.Economic.Forum..The.Bank.organized.two.Russian-Italian.thematic.sessions:.on.bilateral.cooperation.of.large.Russian.and.Italian.companies.and.their.interaction.in.the.field.of.innovative.small.and.medium.businesses.
The.beginning.of.2020.sets.more.complex.tasks.for.us,.opens.up.new.opportunities..I.am.sure.that.Banca.Intesa.and.its.unique.team.will.not.only.preserve.but.also.expand.the.trust.of.customers,.who.are.always.in.the.center.of.its.attention.
Antonio.Fallico,..Chairman.of.the.Board.of.Directors..Banca.Intesa
6
Banca Intesa in 2019
8
GENERAL INFORMATION ABOUT THE BANK
Banca.Intesa.Joint-Stock.Company.is.a.subsidiary.bank.of.the.Italian.Banking.Group.Intesa.Sanpaolo.
The.Bank.provides.banking.services.to.enterprises.and.to.individuals.under.the.General.Banking.License.of.the.Central.Bank.of.the.Russian.Federation.No..2216.dated.May.6,.2015..
The.history.of.Banca.Intesa.dates.back.to.1992,.when.the.European.Bank.for.Reconstruction.and.Development.set.up.the.KMB.Bank..It.was.one.of.the.first.Russian.banks.to.focus.on.financing.for.small.and.medium.enterprises,.which.was.just.emerging.in.Russia.in.the.middle.of.the.nineties..
At.the.beginning.of.2005,.the. Italian.Banking.Group.Intesa.Sanpaolo,.reinforcing.its.Russian.market.presence,.acquired.a.controlling.stake.in.the.KMB.Bank..As.a.result.of.this.deal,.Intesa.Sanpaolo.became.one.of.the.major.foreign.investors.in.the.Russian.banking.sector..
The.Bank.acquired.the.corporate.name.Banca.Intesa.in.January.2010.following.the.incorporation.of.the.Group’s.subsidiary.bank.of.the.same.name,.established.by.Intesa.Sanpaolo.in.2003.and.focused.on.financing.large.Russian.companies.and.Italian.firms.working.in.the.Russian.market..Banca.Intesa.was.the.first.Russian.bank.to.be.wholly.owned.by.an.Italian.bank..
After.the.merger,.which.was.officially.completed.on.January.11,.2010,.the.Bank.progressed.to.a.new.stage.of.evolution..The.reorganized.Bank.upgraded.its.business.strategy.as.a.full-service.bank.and.started.operating.on.the.basis.of.its.rich.experience.in.the.corporate.and.SME.business.sector.
Banca.Intesa.in.2019
Banca intesa in 2019
9
SHAREHOLDERS
100.%.of.the.shares.of.Banca.Intesa.are.owned.by.the.Italian.Banking.Group.Intesa.Sanpaolo.and.are.distributed.as.follows:
0 53.02.%.of.the.shares.are.owned.by.Intesa.Sanpaolo.Holding.International.S.A. 0 46.98.%.of.the.shares.are.owned.by.Intesa.Sanpaolo.S.p.A.
53+47+L Intesa Sanpaolo Holding International S.A. — 53.02 %
Intesa Sanpaolo S.p.A. — 46.98 %
Banca intesa in 2019
10
INTESA SANPAOLO
Intesa.Sanpaolo.is.among.the.top.banking.groups.in.the.euro.area.and.a.leader.in.Italy.in.all.business.areas..With.a.market.capitalization.of.EUR.41.1.billion.as.of.December.31,.2019,.the.Group.ranks.4th.in.the.euro.area.
As.of.December.31,.2019,.the.total.assets.of.Intesa.Sanpaolo.Group.amounted.to.EUR.816.0.billion..The.volume.of.the.granted.loans.is.EUR.395.2.billion,.while.direct.deposits.from.the.banking.business.amounted.to.EUR.425.5.billion,.and.direct.deposits.from.the.insurance.business.and.the.technical.reserves.amounted.to.EUR.165.8.billion..The.Group’s.equity.is.EUR.55.9.billion.(including.EUR.4.1.billion.net.income.for.2019).
Intesa. Sanpaolo. has. some. 3,752. branches. in. Italy. serving. 11.8. million. customers.. With. such. а. unique,. well-developed.network,.the.Bank.serves.12.%.of.the.market.in.17.out.of.20.regions.in.Italy..
Foreign.subsidiaries.rendering.retail.and.commercial.banking.services.operate.across.12.countries.in.Central.and.Eastern.Europe,.the.Middle.East,.and.Northern.Africa,.and.serve.7.2.million.customers.through.1,047.branches.and.offices..Subsidiary.banks,.branches,.and.representative.offices.focusing.on.corporate.customers.operate.in.25.countries.around.the.world.
In. 2019,. Intesa. Sanpaolo. continued. implementing. the. Group. Development. Plan. effective. through. 2021.. This.business.plan.confirms. that. Intesa.Sanpaolo. is. a.bank.geared. towards. real. economy. that. creates. value. for.all.stakeholders..The.Bank. is.expected.to.make.a.significant.contribution.of.over.EUR.300.billion.to.the.economy.between.2018.and.2021..
Banks’ Market Capitalisation (Euro bn)
HSBC
Sberbank
BNP Paribas
Banco Santander
Lloyds Banking Group
UBS
ING
Intesa Sanpaolo
Crédit Agricole
Barclays
Royal B. of Scotland
BBVA
Credit Suisse
Nordea Bank
UniCredit
KBC
Standard Chartered
Societé Générale
DNB
Svenska Handelsb.
SEB
Caixabank
1
2
3
4
5
6
7
8
9
10
11
141.7
79.1
65.9
62.2
51.7
43.5
41.7
41.1
37.3
36.5
34.2
33.4
30.9
29.3
29.1
27.9
26.8
26.4
26.3
19.1
18.5
16.7
Eurozone Ranking
Banca intesa in 2019
11
HISTORY OF INTESA SANPAOLO GROUP
The.history.of.Intesa.Sanpaolo.has.evolved.over.almost.five.centuries.and.is.linked.to.the.world’s.oldest.banking.institutions.–.Istituto.Bancario.San.Paolo.di.Torino.(1563).and.Banco.di.Napoli.(1539)..
The.recent.history.of.Intesa.Sanpaolo.began.on.January.1,.2007.as.a.result.of.the.merger.of.two.leading.Italian.banks.–.Banca.Intesa.S.p.A..and.Sanpaolo.IMI.S.p.A.,.which.played.a.key.role.in.the.process.of.consolidation.of.the.Italian.banking.system.in.the.late.1990s..
INTESA SANPAOLO AND RUSSIA
On. July. 12,. 1973,. the. State. Bank. of. the. USSR. authorized. Banca. Commerciale. Italiana. to. open. a. permanent.Representative.Office.in.Moscow,.which.was.the.first.Representative.Office.of.a.foreign.bank.in.the.Soviet.Union..This.date.marks.the.official.start.of.the.Group’s.presence.in.Russia.
De.facto.banks.under.Intesa.Sanpaolo.Group.started.cooperation.with.Russia.long.before.1973..Back.in.1922,.the.Banca.Commerciale.Italiana.branch.in.Genoa.served.as.the.official.bank.of.the.Soviet.delegation.to.the.Genoa.Conference.. The. 1920-1930s. brought. further. development. in. relations. with. the. USSR. and. became. especially.intensive.in.the.post-war.period,.especially.in.the.1960-1970s..This.was.connected.to.Italy’s.involvement.in.the.largest.industrial.projects.in.the.USSR,.the.most.significant.of.which.was.the.financing.of.a.car.manufacturing.plant.in.Togliatti.and.a.tube-rolling.plant.in.Volzhsk.
Another. important.step.in.the.Bank’s.work.in.Russia.was.the.establishment.of.the.International.Moscow.Bank.in.1989,.which.was.to.become.the.first.commercial.bank.of.Soviet.and.western.shareholders,. including.Banca.Commerciale.Italiana..The.Italian.bank.already.had.similar.experience.in.Hungary.and.was.invited.by.the.State.Bank.of.the.USSR.to.host.the.new.project..During.this.period,.Banca.Commerciale.Italiana.was.already.one.of.the.top.five.foreign.banks.in.terms.of.its.project.loan.portfolio.in.the.Soviet.Union.
So.far.this.century,.Intesa.Sanpaolo.Group.has.been.involved.in.financing.other.interesting.large-scale.projects,.including.the.Blue.Stream.and.Nord.Stream.pipelines.
In.2016,.the.Intesa.Sanpaolo.Group.took.part.in.the.privatization.of.a.19.5.%.stake.in.PJSC.Rosneft.Oil.Company,.the.leader.of.the.Russian.oil.sector,.which.became.the.largest.foreign.investment.in.Russia.in.the.past.few.years..
Over.the.course.of.46.years,.Intesa.Sanpaolo.has.become.a.major.player.in.the.large-scale.economic.and.financial.cooperation.and.extensive.cultural.exchange.programs.between.Russia.and.Italy..
Intesa Sanpaolo
Banca Intesa S.p.A. (year of foundation — 1998)
Sanpaolo IMI S.p.A.(year of foundation — 1998)
Banca Commerciale
Italiana (Comit), founded in
1894
Banco Ambrosiano
Veneto, founded in
1896
Cassa di Risparmio
delle Province Lombarde (Cariplo),
founded in 1823
Istituto Bancario San
Paolo di Torino, founded in
1563
IMI, Istituto Mobiliare Italiano,
founded in 1931
Banco di Napoli,
founded in 1539
Banca intesa in 2019
12
BOARD OF DIRECTORS` REPORT ON THE RESULTS OF THE BANK’S DEVELOPMENT IN PRIORITY BUSINESS AREAS
The.Board.of.Directors.of.Banca.Intesa.acts.for.the.benefit.of.the.Bank.and.its.shareholders,.and.performs.general.management.of.the.Bank.in.accordance.with.the.laws.of.the.Russian.Federation,.the.Charter.and.the.Regulation.of.the.Board.of.Directors.of.Banca.Intesa..
The. key. responsibilities. of. the. Board. of. Directors. are. as. follows:. participating. in. the. development. strategy.elaboration.and.adoption;.approving.the.budget.for.the.current.year;.forming.and.supervising.the.Bank’s.executive.bodies;.organizing.the.internal.control.and.risk.management.system.efficiency.assessment;.establishing.the.Bank’s.personnel.policy,.including.remuneration.of.executive.and.management.bodies;.making.decisions.on.optimization.of.the.Bank’s.organizational.structure.in.order.to.ensure.the.efficiency.of.the.Bank’s.subdivisions.
2019.saw.8.meetings,.with.4.of.them.in.presentia..The.Board.of.Directors.considered.the.following.key.issues:
0 personnel.issues: – election.of.the.Chairman.and.Deputy.Chairman.of.the.Bank’s.Board.of.Directors; – election.of.the.Chairman.of.the.Bank’s.Management.Board; – election.of.new.members.of.the.Bank’s.Audit.Committee; – establishment. of. the. Remuneration. Committee. and. approval. of. the. Regulation. on. the. Bank’s
Remuneration.Committee; – approval.of.the.new.version.of.the.Compensation.and.Remuneration.Policy; – determination.of. the. amount.Bonus. Fund. for. the. year. and. the. amount.of. the.bonus.pay. for. the
members.of.the.Management.Board,.persons.accepting.risks,.and.controllers; – approval.of.changes.in.the.Bank’s.organizational.structure; – approval.of.the.concession.terms.for.loan.products.granted.to.employees.of.the.Bank;
0 risk.management.and.internal.control: – review.of.quarterly.internal.control.reports.in.order.to.combat.money.laundering.and.terrorist.financing
(AML/CFT),.review.of.compliance.reports; – review.of.quarterly.major. risks. reports,. the.Bank’s. capital. adequacy. ratio,. approval.of. internal. risk
management.regulations; – approval. of. the. new. version. of. the. Bank’s. Credit. Policy. and. the. Regulation. on. the. Financial. Risk
Committee; – review. of. quarterly. Internal. Audit. Department. reports,. approval. of. the. plan. for. 2019,. review. of
quarterly.reports.of.the.controller.of.the.Bank’s.stock.market.trading;
0 review.of.the.Bank’s.quarterly.financial.statements; 0 consideration.of.information.security.issues;. 0 review.of.internal.committee.reports.and.decisions.made.
In.order.to.improve.the.efficiency.of.the.Bank’s.Board.of.Directors.and.refine.the.Bank’s.corporate.governance.practices,.a.self-assessment.of.the.Board.of.Directors’.performance.was.conducted.in.2019.in.accordance.with.the.recommendations.of.the.Bank.of.Russia.
Banca intesa in 2019
13
FINANCIAL PERFORMANCE
ANALYSIS OF FINANCIAL PERFORMANCE FOR 2019
The. net. interest. income,. net. of. provisions,. has. decreased. by. RUB. 127. million. since. 2018,. mainly. due. to. the.interest.margin.adjustment.on.ruble.transactions,.taking.into.account.the.general.reduction.of.the.Bank.of.Russia.key.interest.rate.by.150.basis.points.during.2019..It.should.be.noted.that,.in.general,.the.market.responds.more.promptly.by.reducing.rates.on.funds.placement.than.on.raised.deposits.with.the.relevant.trend.of.the.key.interest.rate;.the.opposite.trend.is.observed.when.it.increases,.which.causes.the.effect.of.narrowing.of.the.interest.margin,.especially.with.the.corporate.portfolio.outstripping.growth.rates.in.comparison.to.the.higher-margin.sectors.of.small.and.medium-sized.enterprises.(SME).and.retail..
Moreover,.in.Q4.2019,.a.significant.volume.of.foreign.currency.transactions.has.been.implemented.in.the.corporate.business.sector,.which.has.had.a.limited.impact.on.the.net.interest.income.of.the.Bank.
The.implementation.of.the.new.IFRS.standard.16.Leases.from.January.2019.has.caused.an.additional.negative.impact.on.the.dynamics.of.the.net.interest.income,.which,.as.a.result,.manifested.itself.in.the.interest.expense.of.the.discounted.value.of.the.lease.payments.under.the.effective.lease.agreements.worth.RUB.56.million.
In.comparison.to.2018,.the.net.fee.and.commission.income.has.decreased,.mainly.due.to.the.effect.of.the.high.base. of. 2018,. as. the. Bank. had. earned. a. commission. for. arranging. a. transaction. to. finance. a. major. Russian.company.
In.2019,. the. favorable. conditions.prevailing. in. the. foreign.exchange.market. enabled.an. increase.of.RUB.180.million.in.the.net.income.from.the.trading.transactions.in.foreign.currency.
In.comparison.to.2018,.implementation.of.measures.to.optimize.operating.costs,.including.a.significant.reduction.in.the.maintenance.costs.for.the.Bank’s.regional.network.and.the.Bank’s.head.office.in.Moscow.(partially.as.a.result.of.the.implementation.of.the.new.IFRS.standard.16.Lease),.has.reduced.the.Bank’s.operating.costs.by.RUB.40.million.in.2019.
The.Bank’s.conservative.approach.to.the.quality.of.generated.assets,.continuous.work.during.previous.years.to.improve.underwriting.procedures.for.all.business.sectors.in.order.to.maintain.the.quality.of.the.loan.portfolio,.as.well.as.the.positive.impact.of.the.country’s.economic.growth,.enabled.the.Bank.to.reduce.significantly.the.costs.of.building.up.provisions.for.impairment.of.loan.portfolio.and.net.investments.into.financial.leasing.in.both.absolute.and.relative.terms.
In accordance with the International Financial Reporting Standards (IFRS) as of December 31, 2019:
430mln RUB
Bank’s Net Profit
65bln RUB
Bank’s Assets
46bln RUB
Bank’s Total Loan Portfolio
13.3bln RUB
Bank’s Capital
18.1 %
Bank’s Total Capital Adequacy Ratio under
Basel accord
Banca intesa in 2019
14
Operating expenses, mln RUB
1 242
December 2018
December 2018
December 2019
December 2019
1 650
412
Amortisation of fixed/intangible assets
Other administrative expenses
Personal Expenses
3 304
1 054
1 624
586
3 264
- 1 %
The.costs.of.building.up.provisions.for. impairment.of. loan.portfolio.and.net. investments. into.financial. leasing,.other.provisions.for. loan. losses.have.reduced.more.than.double. in.comparison.to.2018.while.maintaining.the.coverage.ratio.of.the.total.loan.portfolio.at.8.3.%,.and.the.non-performing.assets.portfolio.at.68.%.
In.2019,.the.Bank’s.net.profit.before.tax.under.IFRS.was.RUB.430.million.
LOAN PORTFOLIO ANALYSIS
In.comparison.to.2018,.the.total.loan.portfolio,.including.leasing.transactions,.has.increased.by.RUB.5.8.billion.at.the.end.of.2019.and.has.amounted.to.RUB.46.billion.(+.14.%),.the.increase.of.the.performing.loan.portfolio.has.amounted.to.RUB.6.4.billion.(+.18.%).
In.comparison.to.2018,.continued.growth.in.the.sector.of.corporate.clients.lending.in.2019.–.which.resulted.from.the.conclusion.of.bilateral.agreements.with.customers.and.the.Bank’s.participation.in.club-style.transactions.and.syndications,.–.has.had.the.main.impact.on.the.dynamics.of.the.performing.loan.portfolio.in.2019;.which.enabled.the.overall. volume.of. the.corporate.business. loan.portfolio. to. increase.by.29.%,. reaching.RUB.24.billion..The.vigorous.growth.of.the.corporate.business.over.the.past.two.years.has.enabled.the.increase.in.the.volume.of.the.loan.portfolio.in.this.sector.by.RUB.12.billion,.which,.in.fact,.means.a.double.increase.in.this.sector,.as.compared.to.the.data.at.the.end.of.2017..
The.total.volume.of.corporate.business,.including.documentary.transactions.and.lending.commitments.under.the.loan.agreements.concluded.at.the.end.of.the.year,.has.increased.by.62.%.in.2019.to.reach.approximately.RUB.52.billion.
Corporate business, bln RUB
13
19Documentary operations and loan commitments
Performing loan portfolio
32 28
24
52
+ 62 %
Banca intesa in 2019
15
December 2018 December 2019
Performing loan portfolio, bln RUB
12.8
SME Retail Leasing
December 2018
December 2019
14.0- 3 % - 12 %
+ 9 %
The.state.support.for.small.and.medium-sized.enterprises,.which.has.been.developing.significantly.in.the.recent.years,.combined.with.the.Bank’s.active.participation.in.special.state.programs.for.lending.to.organizations.in.this.sector,.have.had.a.significant.impact.on.the.SMEs.development.in.2019.and.has.enabled.the.increase.in.volume.of.the.performing.loan.portfolio.by.9.%.
During. 2019,. the. Bank. continued. its. engagement. in. the. activities. with. the. current. portfolio,. including. those.relating.to.the.support. for.companies.experiencing.certain.difficulties..A.number.of.successful. restructurings.–.aimed,.inter.alia,.at.improving.the.Bank’s.position.in.terms.of.the.transaction.structure.and.debt.security.–.have.been.undertaken..
In.comparison.to.2018,.the.amount.of.non-performing.loans.in.the.Bank’s.loan.portfolio.has.decreased.by.11.%,.which.resulted.from.a.general.improvement.in.the.quality.of.the.incoming.loan.portfolio.and.enhanced.actions.in.working.with.non-performing.loans..
1.7 1.7 1.4 1.2
Non-performing loans, bln RUB
Non-performing loans (NPL)
NPL ratio
5.6
10.8
13.9
5
- 11 %
DEPOSIT PORTFOLIO ANALYSIS
At.the.end.of.2019,.the.Bank’s.deposit.portfolio.size.increased.by.more.than.RUB.5.billion.to.reach.the.amount.of.more.than.RUB.35.billion..The.growth.of.the.deposit.portfolio.size.in.the.context.of.lower.interest.rates.on.raised.funds.was.largely.due.to.the.development.of.business.with.the.Bank’s.Private.and.corporate.clients.
Banca intesa in 2019
16
CAPITAL ADEQUACY
At.the.end.of.2019,.the.capital.adequacy.ratio. in.accordance.with.the.provisions.of.the.Basel.Committee.was.14.7.%,. and. the. total. capital. adequacy. ratio. was. 18.1.%.. The. principles. of. the. European. banking. regulator,.effective.since.2015,.were.applied.to.calculate.the.capital.adequacy.ratio..
The.capital.adequacy.ratio.significantly.exceeds.the.minimum.level.established.by.the.Basel.Committee.(8.%).
The.capital.adequacy.ratio.under.the.Russian.Accounting.Standards.(RAS).amounted.to.16.%,.the.core.and.total.capital.adequacy.ratios.—.11.9.%,.which.significantly.exceeds.the.minimum.levels.set.by.the.Bank.of.Russia.(8.%,.4.5.%.and.6.%.respectively).
As.of.January.1,.2020,.the.financial.leverage.ratio.(Basel.III).amounted.to.11.3.%.
Banca intesa in 2019
17
RATINGS
Pursuant.to.the.results.of.2019,.based.on.the.information.of.rating.agencies,.Banca.Intesa.continues.to.maintain.strong.positions.on.the.Russian.financial.market.and.confirms.its.high.reliability.
Banca.Intesa.has.been.assigned.the.following.ratings:
FITCH
“BBB–”. . long-term.foreign.and.local.currency.IDRs.
“F3”.. . short-term.foreign.and.local.currency.IDRs.
“2”.. . support.rating.
“b+”. . viability.rating.
“BBB–”. . senior.debt.long-term.rating.
EXPERT RA
“ruA” . Expert.RA.Positive.Outlook
According.to.the.results.of.research.of.the.Russian.market.of.SME.lending.of.Expert.RA.for.2019.Banca.Intesa.holds:
12th place
in.Russia.in.terms.of.the.volume.of.the.SME.loan.portfolio..(as.of.January.1,.2020)
19th place
in.Russia.in.terms.of.the.SME.loans.issued.in.2019..(as.of.January.1,.2020)
Banca.Intesa.takes.14th place.in.Russia.among.the.most.reliable.banks.according.to.Forbes’.Rating.of.the.most.reliable.banks.in.2020.
As.of.December.1,.2019,.Banca. Intesa. is. in. the. list.of.credit. institutions.whose.deposits.are.allowed.to. invest.pension.savings,.savings.for.military.personnel.housing.and.temporarily.free.funds.of.the.state.corporations.Deposit.Insurance.Agency,.Rostec,.Rosatom,.Roscosmos.and.the.State.Company.Russian.Highways.
Banca intesa in 2019
18
BANK’S POSITION IN THE STOCK MARKET
Banca.Intesa.has.the.following.permanent.licenses.as.a.professional.participant.in.the.securities.market.to.perform.the.following.activities:.
0 License.for.Dealer.Activities.No..177-10801-010000.dated.Deсember.04,.2007;. 0 License.for.Brokerage.No..177-10794-100000.dated.Deсember.04,.2007;. 0 License.for.Custody.Operations.No..177-12028-000100.dated.February.10,.2009.
In. 2019,. within. the. framework. of. liquidity. management,. the. Bank. carried. out. transactions. with. government.securities.(OFZ).and.coupon.bonds.issued.by.the.Bank.of.Russia.on.the.organized.securities.market..The.securities.portfolio.by.the.end.of.2019.amounted.to.RUB.4.1.billion..
In.October.2019,.the.Bank.repaid.001P.-.01R.exchange-traded.bonds.worth.RUB.3.billion..In.2020,.the.Bank.plans.to.continue.the.programs.of.issue.of.exchange-traded.bonds.
3.0bln RUB
4.1bln RUB
Repaid exchange-traded bonds
Securities portfolio
Business development in 2019
20
SIGNIFICANT TRANSACTIONS IN 2019
Business.development.in.2019
Participation. in.a.syndicated. loan.for.a. total.amount.of.EUR.720.million.and.USD.120.million.for.5.years.for.Siberian.Anthracite.JSC..Banca.Intesa.and.VUB.Banka.acted.as.lead.underwriters.with.total.participation.of.EUR.90.million..The.funds.are.channeled.current.debt.refinancing.and.general.corporate.purposes.
As. part. of. the. development. of. relations. with. the. Ural. Mining. and.Metallurgical.Company.Group,.Banca.Intesa.took.part.in.a.syndicated.loan.for. Ural. Mining. and. Metallurgical. Company. in. the. amount. of. EUR. 200.million.with.the.Bank’s.share.of.EUR.10.million.
The.borrowed.funds.were.used.to.refinance.current.corporate.debt.and.replenish.the.working.capital.of.UMMC.Group.
Banca.Intesa.has.signed.a.loan.facility.agreement.with.Polyus.Krasnoyarsk.JSC,.a.member.of.the.Polyus.Group.(the.leading.gold.producer.in.Russia).
The.loan.is.USD.40.million.and.is.due.in.5.years..The.funds.are.channeled.to.general.corporate.purposes.
Conclusion.of. an.agreement.on.opening.a.multi-currency.multi-product.loan.facility.for.working.capital.financing.to.Ariant,.the.largest.winegrowing.and.vine-making.holding.in.Russia..
The. loan. facility.amounts. to.RUB.500.million,.and. is.due. in.24.months..The. funds.are. intended. to. finance. the.current.activities.of. the.group.of.companies.
In.the.frames.of.starting.cooperation.with.ALROSA.PJSC,.Banca.Intesa.acted.as.an.agent,.authorized. leading.organizer.and. lender. for. the.syndicated.loan..The.total.loan.amount.is.USD.50.million,.the.stake.of.Banca.Intesa.is.USD.25.million..The.loan.is.provided.for.2.years.and.intended.for.corporate.purposes.
Business development in 2019
21
SERVICES FOR CORPORATE CUSTOMERS
In.2019,.corporate.block.demonstrated.good.dynamics.with.portfolio.growth.reaching.the.record.RUB.19.6.billion,.including.the.trade.finance.portfolio,.which.has.increased.by.56.%.since.2018,.a.record.for.the.last.5.years..The.portfolio.growth.made.possible.by.expanding.the.customer.base,.strengthening.relations.with.existing.customers.of.the.Bank.and.active.participation.in.new.syndicated.loans.
In.2019,.Banca. Intesa.developed.dedicated.Relationship.Offices. for.Domestic,.Multinational.and. Italian.clients,.deploying.the.most.appropriate.professional.resources.to.well-targeted.portfolios.of.clients.
The. increasing.focus.on.products,.and.the.aim.to.provide.corporate.clients.with.concrete.value-added.in.response.to.tightening.market.conditions.crystallized.in.the.creation.of.a.dedicated.Business.Unit,.named.Corporate.Business.Solutions,.charged.with.the.mission.to.originate,.develop.and.implement.innovative.financial.and.advisory.banking.products.
Corporate.Business.Units.encompasses.the.entire.spectrum.of.banking.expertise.of.Banca.Intesa,.thereby.comprising.digital.payments.and.services. (managed.by.a.newly-created.Desk,.Digital.Office);. trade. finance.and.structured.export.finance.(supervised.by.Trade.Finance.Office);.and.two.entirely.new.entities,.Corporate.Banking.Products.Office.and.Structured.Products.Office.
Banca.Intesa’s.attention.to.products.shall.translate.into.a.rounder.commercial.coverage,.whereby.balance.sheet.and.transaction.banking.support.is.complemented.by.structured.propositions.that.allow.all.corporate.clients.to.leverage.Banca.Intesa.expertise.in.far-fetched.transactions.as.a.reliable.one-stop-shop.business.partner.
COOPERATION WITH RUSSIAN CORPORATE CUSTOMERS
The.corporate.unit.continues.to.expand.its.presence.in.all.key.regions.of.the.country..In.2019,.the.bank.achieved.stable.dynamics.of.commercial.indicators.in.the.regional.network..The.total.corporate.portfolio.in.regions.increased.by.24.%.and.amounted.to.RUB.14.billion..In.2019,.the.Ural.and.Volga.regions.showed.a.steady.growth.in.the.corporate.sector.
In.2019,.Вanca.Intesa.was.active.in.multiple.large.transactions.on.the.Russian.market.of.syndicated.financing..In.particular,.the.Bank.was.one.of.the.participants.in.the.syndicated.financing.of.the.largest.Russian.corporations,.such.as.Sibanthracite.JSC,.Uralkali.PJSC,.and.the.Ural.Mining.and.Metallurgical.Company.OJSC..Banca.Intesa.also.acted.as.the.organizer.of.the.syndicated.loan.for.Alrosa.PJSC.
Using.local.expertise,.experience.and.the.wide.network.of.foreign.business.units.of.the.parent.company.Intesa.Sanpaolo,.the.Bank.confirms.its.role.as.an.active.agent.of. international.financing.for. largest.Russian.corporate.customers.from.various.industries..Banca.Intesa.continues.close.relationships.with.metallurgic,.mining,.chemical,.agro.industrial.companies.and.mineral.fertilizer.producers.
In. 2019,. the. corporate. unit. demonstrated. an. increase. in. deposits. and. current. account. balances. by. 7.%.as. compared. to. 2018,. which. achieved. RUB. 11. billion.. Credit. ratings. assigned. by. Expert. RA. agency,..‘ruA’ Positive Outlook.and.Fitch.‘BBB-’,.confirm.the.reliability.and.sustainability.of.the.Bank.and.justify.the.trust.and.loyalty.of.corporate.customers.
Very. important.was. the.considerable.progress. in.developing.new.banking.products,.with.particular. reference. to.a.smoother.corporate.client.experience.with.Banca.Intesa.and.greater.coverage.of.trade.finance.and.trade-related.spaces.
COOPERATION WITH TRANSNATIONAL CORPORATES AND ITALIAN COMPANIES
In. 2019,. International. accounts. (i.e.. commercial. segment. comprising. Multinational. Corporates. and. corporate.clients.managed.by.Italian.Desk).once.again.made.decisive.contributions.to.Banca.Intesa.performance..The.result.of. this.work.was.a. significant.expansion.of. the.Bank’s.activity. in. this. segment.. In.2019,. the.profitability. from.the.operations.with.multinational.corporates.and. Italian.companies.grew.by.more.than.50.%..Bank.continued.supporting.the.operations.of.world-leading.entities.in.the.fields.of.food.&.beverage,.infrastructures,.automotive,.energy,.petrochemicals,. retail. and. luxury. segment..Assets. in. the. segment.of. the.multinational. corporates.and.Italian.companies.grew.by.almost.5.times.
Business development in 2019
22
Italian.Desk,.the.dedicated.corporate.coverage.desk.for.companies.owned.or.managed.by.Italian.entrepreneurs.active. in. the.Russian. Federation,. consolidated. its.market. share,.while. consistently.broadening. the.portfolio.of.services.to.high-value.offerings.that.included.Advisory.and.Specialized.Lending.
In.2019,.Banca.Intesa.presided.a.portfolio.of.more.than.300.corporations.working.in.the.sphere.of.Russian-Italian.cooperation,.lending.active.financial.support.to.companies.in.the.textile,.retail,.pharma,.industrials,.energy.and.infrastructure.industries..Amongst.the.largest.transactions,.Banca.Intesa.acted.as.sole.advisor.to.one.of.Europe’s.largest.energy.companies.for.the.valuation.of.real.assets.located.in.Siberia;.also.during.the.year,.Banca.Intesa.acted.as.a.derivatives.advisor.to.one.of.Italy’s.largest.oilfield.services.company.
TRADE FINANCE AND DOCUMENTARY TRANSACTIONS
The.trade.finance.and.documentary.transactions.are.the.Bank’s.priority.
In.2019,.Banca. Intesa.continued. to. service.export.and. import. transactions.and.contracts.of. the.Bank’s. clients.developing.trade.and.structured.finance.operations,.which.can.meet.the.companies’.needs.
At.the.end.of.2019,.the.trade.finance.portfolio.amounted.to.RUB.25.billion.showing.an.almost.double.growth.since.2018.(by.RUB.12.4.billion).
2015
2016
2017
2018
2019
14.1
11.5
11.4
12.6
25.0
Trade finance portfolio, bln RUB
The.Bank.offers.its.clients.a.wide.range.of.bank.instruments,.issuing.all.types.of.documentary.letters.of.credit,.bank.guarantees.and.stand-by.letters.of.credit..
The. largest. providers. of. goods. and. services. are. among. the. beneficiaries. accepting. the. Bank’s. documentary.instruments,.including:.
0 PUNTO.FA,.S.L., 0 Snecma.(Safran.Group),. 0 Bondioli.&.Pavesi.S.p.A.,. 0 IVECO.RUSSIA.LLC./.Iveco.Spa,. 0 BAKI.METROPOLITENI, 0 MGC.MOSER-GLASER.AG, 0 RED.WIND.B.V., 0 WEG.COLOMBIA.S.A.S., 0 SK.NETWORKS.CO.,. 0 LTD.BENETTON.RUSSIA, 0 SIEMENS.S.A.,. 0 RIZZANI.DE.ECCHER.S.P.A.,
0 DUFERCO.S.A.,. 0 Philip.Morris./.Philip.Morris.Sales.and.Marketing.LLC,. 0 Cummins.Ltd, 0 Severstal.PJSC, 0 State.Corporation.ROSENERGOATOM,. 0 Russian.Railways.OJSC, 0 KAMAZ.PTC, 0 TC.EvrazHolding.LLC, 0 Russian.Post.FGUP, 0 Ural.Mining.and.Metallurgical.Company.OJSC, 0 Northern.Capital.Gateway.LLC, 0 Teva.Ltd.,.etc.
The.portfolio.of.Banca.Intesa.comprises.transactions.of.trade.financing,.provided.to.the.beneficiaries.both.in.the.country.of.Bank’s.residence.(the.Russian.Federation).and.worldwide.
Business development in 2019
23
Diversification of the Trade Finance portfolio by countries of Beneficiaries presence
63+22+4+3+3+2+2+1+LRussia — 68.3 %
Western Europe — 24.8 %
Southeast Asia (China, South Korea, Singapore) — 3.3 %
CIS countries (Kazakhstan etc.) — 1.1 %
Latin America — 1 %
Near and Middle East — 0.6 %
Africa — 0.6 %
Eastern Europe — 0.3 %
Within. the. framework. of. trade. finance. transactions,. the. Bank. cooperates. with. first-class. foreign. banks. from.countries.in.Europe.and.Asia,.including:
0 Banks.of.Intesa.Sanpaolo.Group.(in.37.countries.of.the.world), 0 Deutsche.bank.AG.(Germany),. 0 UniCredit.Bank.AG.(Germany), 0 Commerzbank.AG.(Germany), 0 La.Caixa.(Spain),. 0 .Banco.de.Sabadell.(Spain),. 0 UBS.Switzerland.AG.(Switzerland),. 0 Raiffeisen.Bank.International.AG.(Austria), 0 Bank.of.Baroda.(India),. 0 Bank.ICBC.(China).
In.2019,. the.Bank. supported,. strengthened.and.expanded.partnerships.with.correspondent.banks.worldwide,.which.significantly.increased.the.quality.of.trade.finance.transactions.
Many.clients.of.the.Bank.have.highly.appreciated.the.price.competitiveness.and.safe.and.fast.work.of.documentary.services.of.the.banks.of.the.Intesa.Sanpaolo.Group,.represented.in.almost.37.countries.around.the.world..The.advantages.of.Banca.Intesa.in.terms.of.these.types.of.activities.are.its.flexible.approach,.experience.in.structuring.complex.transactions,.an.understanding.of.the.market.specifics.and.professional.consulting.support.
Among.the.clients.using.the.trade.finance.instruments.of.Banca.Intesa.are.major.manufacturers.of.agricultural.machinery,.heavy.engineering.enterprises,.suppliers.of.various.types.of.equipment,.trading.companies,.companies.rendering.distribution.and.logistics.services.
The.Bank.is.one.of.the.authorized.bank.guarantors.for.the.issue.of.bank.guarantees.in.favor.of.the.Federal.Customs.Service.of.Russia.(FCS.of.Russia)..The.aggregated.limit.set.for.the.Bank.for.issuance.of.customs.guarantees.is.RUB.2.64.billion..The.maximum.amount.of.a.single.guarantee.is.RUB.660.million..In.2019,.the.Bank.issued.guarantees.in.favor.of.the.Customs.authorities.of.the.Russian.Federation.in.the.amount.of.RUB.1.3.billion..Since.2017,.Banca.Intesa.issues.bank.guarantees.in.favor.of.the.Federal.Customs.Service.of.Russia.in.electronic.form.
Guarantees.of.Banca.Intesa.are.also.accepted.by.the.Tax.authorities.of.the.Russian.Federation,.while.the.sum.of.all.simultaneously.valid.guarantees.in.favor.of.the.Federal.Tax.Service.is.RUB.2.64.billion,.the.maximum.amount.of.one.guarantee.is.RUB.660.million.
Banca.Intesa.issues.guarantees.in.favor.of.the.Federal.Service.for.Alcohol.Market.Regulation,.(Rosalkogolregulirovanie).whereas.the.amount.of.all.the.guarantees,.which.are.effective.simultaneously,.may.reach.RUB.4.4.billion,.and.the.maximum.amount.of.a.single.guarantee.in.favor.of.Rosalkogolregulirovanie.is.determined.to.amount.to.RUB.845.million.
In.the.reporting.period,.the.Bank.continued.its.cooperation.with.the.Russian.State.Institutions,.the.products.of.which.allow.the.Bank.to.offer.its.clients.competitive.conditions.of.financing.their.export.activities.
Business development in 2019
24
SMALL AND MEDIUM ENTERPRISES
Banca. Intesa. has. many. years. of. experience. of. working. with. small. and. medium. enterprises.. The. Bank. offers.entrepreneurs. efficient. financial. instruments. and. new. opportunities. for. development.. The. Bank’s. high-quality.service,.individual.approach.to.the.needs.of.their.customers.and.excellent.reliability.enables.the.Bank.to.keep.its.leading.position.among.banks.dealing.with.small.and.medium.enterprises.(SME).in.Russia..Banca.Intesa.actively.cooperates.with.the.Federal.Corporation.for.the.Development.of.Small.and.Medium.Enterprises.(SME.Corporation).within.the.state.program.for.supporting.small.and.medium.enterprises.in.Russia.
In.2019.the.Bank.increased.6.3.fold.lending.to.small.and.medium.enterprises.secured.with.guarantees.of.the.SME.Corporation..The.amount.of.guarantees.issued.by.the.SME.Corporation.for.loans.granted.by.Banca.Intesa.under.the.Guarantee.Mechanism.Program.increased.6.8.fold.as.compared.to.2018..Banca.Intesa.took.an.active.part.in.the.new.credit.programs.of.state.support.of.small.and.medium.business,.including.refinancing.services.of.loans.at.other.banks..The.loan.products.issued.in.2019.under.the.SME.state.support.programs.exceeded.the.lending.in.2018.by.2.7.times.
In. addition. to. small. and. medium. business. loans. services. development,. in. 2019. a. lot. of. attention. was. drawn.to.the.increasing.the.level.of.online.services.under.the.development.of.transactional.business,.internet-banking.modernization.has.been.completed.in.order.to.ensure.compliance.with.the.highest.requirements.and.to.enhance.customers’.possibilities.for.receiving.remote.services..In.2019,.the.“Premium”.package.of.services.was.launched.for.SME.companies.with.individual.terms.in.both.the.product.price.offer.and.the.services.provided.by.a.personal.manager.
Today,.the.Bank.offers.a.variety.of.packages.for.settlement.and.cash.services,.taking.into.account.the.specifics.of.the.particular.company’s.activities.and.the.individual.needs.of.its.customers.
Throughout.2019.the.Bank.increased.deposits.and.balances.on.SME.customers’.accounts.by.15.%..The.Bank’s.current.SME.liabilities.portfolio.amounts.to.RUB.9.billion.
SME LENDING
At.the.end.of.2019,.the.Bank.increased.by.6.%.the.volume.of.lending.products.to.SMEs.–.as.compared.to.2018..In.total,.the.loan.portfolio.in.the.SME.segment.amounted.to.RUB.16.billion..The. loan.portfolio. is.built.up.with. its.quality.maintained..Thus,. in.2019,. the.growth.of. the.performing. loan.portfolio.amounted. to.RUB.1.2.billion. (9.%),.while. the.non-performing.loan.portfolio.decreased.by.17.5.%.
With.regard.to.loan.terms,.the.share.of.medium-term.and.long-term.loans.in.the.SME.loan.portfolio.is.76.%,.which.is.part.of.the.strategy.for.building.long-term.relationships.with.the.SME.clients.
The.product.structure.of.loans.disbursed.consists.of.mainly.credits./.Non-revolving.credit.lines. (23.%),. Revolving. credit. lines. (14.%),. credit. lines. issued. under. SME. state. support.programs.(48.%).and.refinancing.(10.%).
16bln RUB
9bln RUB
Loan portfolio in the SME segment
Bank’s SME liabilities portfolio
Structure of SME loan portfolio by type of the bank’s loan products, %
32+23+16+14+10+5+LSME-Universal — 32 %
Business loan — 23 %
Subsidy programm — 16 %
Revolving credit facility — 14 %
Loan Refinancing — 10 %
Other — 5 %
Business development in 2019
25
FINANCING OF SME AS PART OF THE STATE SUPPORT PROGRAM
Banca.Intesa.was.among.the.first.to.start.cooperation.with.the.SME.Corporation.in.the.framework.of.state.support.for.lending.to.small.and.medium.enterprises..In.2019,.the.share.of.loans.to.SME,.issued.as.part.of.the.SME.state.support.programs.increased.2.3.fold.to.reach.44.%.in.the.Bank’s.total.portfolio..A.significant.increase.in.the.scope.of.the.SME.state.support.programs,.as.well.as.improvement.and.expansion.of.the.conditions.for.their.provision,.have.largely.prompted.the.availability.of.financial.resources.for.small.and.medium.enterprises.
In.2019,.the.program.of.lending.secured.by.guarantee.funds.has.been.increased.1.4.times.in.terms.of.volume..The.Bank.has.contracts.on.the.provision.of.surety.by.funds.in.19.cities.and.regions:.Moscow,.St..Petersburg.and.Leningrad.region,.Primorsky.and.Khabarovsk.Territory,.Kaliningrad,.Samara,.Nizhny.Novgorod.Regions,.Novosibirsk,.Omsk,.Altai.Region,.Krasnoyarsk,.Tomsk,.Krasnodar,.Rostov-on-Don,.Volgograd,.Yekaterinburg,.Chelyabinsk.and.Tyumen..The.total.loan.portfolio.disbursed.under.the.collateral.of.the.guarantee.funds.in.2019.made.up.about.RUB.1.4.billion.
In.2019,.an.agreement.was.reached.with.the.SME.Corporation.to.reduce.the.term.and.simplify.the.procedure.for.providing.guarantees.as.security.for.loans.to.the.clients.of.Banca.Intesa,.which.will.allow.for.increasing.the.availability.of.financing.for.enterprises,.acquiring.new.clients.to.the.Bank,.and.increasing.the.volume.of.lending..
Sectoral structure of SME loan portfolio, %
32+20+13+12+10+6+3+2+1+1+L
44+17+12+9+6+6+2+2+1+1+L
Manufacturing – 32 %
Wholesale – 20 %
Services – 13 %
Rent – 12 %
Retail – 10 %
Transport – 6 %
Other – 3 %
Catering – 2 %
Construction – 1 %
Agriculture – 1 %
Sectoral structure of the bank’s portfolio in the segment of loans with state support, %
Manufacturing — 44 %
Wholesale — 17 %
Services — 12 %
Rent — 9 %
Retail — 6 %
Transport — 6 %
Catering — 2 %
Construction — 2 %
Other — 1 %
Agriculture — 1 %
The.distribution.of. SME. loans.portfolio.by. industries. is. as. follows:.manufacturing. (32.%),.wholesale. (20.%),.services.(13.%),.rent.(12.%),.retail.(10.%),.transport.(6.%),.other.(3.%),.catering.(2.%),.construction.(1.%).and.agriculture.(1.%).
Business development in 2019
26
RETAIL BUSINESS
BUSINESS DEVELOPMENT
In.2019,.the.Retail.Business.Department.has.continued.to.work.within.the.framework.of.the.approved.strategy.for.development.of.Retail.Business..The.main.focus.of.the.Bank’s.work.with.retail.customers.is.aimed.at.improving.the.efficiency.of.the.retail.business,.strengthening.the.customer.work.in.the.Private.and.Affluent.segments,.and.transforming.the.product.range.for.the.more.focused.work.with.the.segment.of.affluent.customers.
PRIVATE BANKING
As.part.of.the.new.strategy.for.the.development.of.Private.banking,.new.dedicated.customer.service.areas.for.the.Private.banking.segment.were.opened.in.2019:.in.Moscow,.in.the.Bank’s.head.office.and.in.the.office.at.24.Zatsepa.Street;.in.St..Petersburg,.in.the.building.of.the.Bank’s.North-Western.branch..The.team.of.employees.servicing.Private.banking.segment.customers.was.increased.by.hiring.new.qualified.specialists..As.a.result.of.high.performance.in.2019,.the.amount.of.the.deposit.portfolio.of.the.Private.segment.customers.was.increased.by.116.%.
INTESA MAGNIFICA
The.second.most.important.segment.of.premium.customers,.Intesa.Magnifica,.showed.a.7.4.%.growth.in.deposit.amount.at. the.end.of.2019..The. transition. to.portfolio.management,. individual. service,. the.ability. to.diversify.assets,.an.updated.product.offer,.and.the.professionalism.of.client.managers.allowed.the.Bank.to.maintain.the.portfolio.growth.trend.in.this.segment.
Portfolio volume
2018 2019
Private
Magnifica
+7.4 %
+116 %
Business development in 2019
27
Distribution of the deposit portfolio by terms, %
6+5+16+35+2+36+L48+52+L RUB — 48 %
USD — 52 %
Distribution of the deposit portfolio by currencies, %
DEPOSITS
In.2019,.the.Bank,.despite.frequent.market.fluctuations,.at.all.times.provided.up-to-date.deposit.solutions.catering.the.needs.and.goals.of.individual.customers.
Following. the. results.of.2019,. the. composition.of. individuals’. deposits. is. significantly.dominated.by.mid-term.and.long-term.deposits,.which.that.means.depositors’.trust.in.the.Bank.is.still.high..The.share.of.deposits.placed.for.6.months.and.more.amounted.to.94.%.in.2019,.and.the.most.popular.deposit.maturity.is.731.days.(36.%.of.individuals’.term.deposit.portfolio).
As.of.the.end.of.2019,.USD.deposits.prevail.in.the.structure.of.individuals’.deposit.portfolio,.comprising.52.%.of.the.portfolio.
BANK CARDS
2019.saw.a.number.of.promotional.campaigns.along.with. the.VISA. international.payment.system. in.order. to.promote.the.Bank’s.VISA.Gold,.VISA.Signature.and.VISA.Infinite.premium.cards.
The.debit.and.credit.card.product.line.of.the.Bank.was.also.revised,.with.changes.in.the.service.rates.for.premium.customers..
New.options.have.been.added.to.a.number.of.banking.products,.such.as.cashback.and.accrual.of.interest.on.the.balance.of.customers’.own.funds..The.rate.policy.has.been.changed,.which.secured.increased.income.from.active.use.of.bank.cards..Intesa.Transfers,.a.new.service.to.transfer.money.online.between.cards.of.any.Russian.Bank,.has.been.introduced..The.Bank’s.cards.may.be.replenished.without.commission,.with.a.total.amount.of.transfers.of.up.to.RUB.50,000.per.month..Customers.can.use.the.service.to.both.repay.loans.or.transfer.money.for.their.current.expenses..Intesa.Transfers.is.available.on.the.Bank’s.website.and.also.as.a.convenient.mobile.app.
CREDITING RETAIL CLIENTS
The. credit. product. range. has. been. revised. to. meet. the. expectations. of. premium. customers,. including. those.regarding. the. range.of. loan.amounts,. terms,. interest. rates,.and.collateral..More. favorable. loan.conditions.are.offered.for.a.bigger.loan.amount.
The.average.amount.of.consumer.loan.is.still.high.due.to.loans.granted.to.Magnifica.and.Private.clients.
3M — 6 %
6M — 5 %
9M — 16 %
1Y — 35 %
1.5Y — 2 %
2Y — 36 %
Business development in 2019
28
LEASING
In.2019,.the.Russian.leasing.market.showed.zero.growth.in.new.business.volumes,.which.is.calculated.as.the.cost.of.leased.assets.transferred.to.clients,.VAT.excluded..At.the.same.time,.there.is.a.decrease.in.the.total.volume.of.new.leasing.agreements,.which. is.caused.by.the.gradually.reducing.key.rate.of.the.Bank.of.Russia.and.the.increasing.price.competition.between.leasing.companies..Unlike.in.the.past.three.years.of.growth,.the.Russian.lease.market.is.likely.to.stagnate..The.main.reason.for.the.slowdown.in.2019.was.the.slump.in.the.new.business.volumes. in. segments. such.as.aviation. leasing.and. railway. transport,.which.used. to.be. the.key.growth.drivers.before..At.the.same.time,.there.was.an.increase.in.the.volume.of.lease.financing.of.real.estate.and.car.leasing.transactions..Favorable.factors.for.the.leasing.market.as.a.whole.were.various.forms.of.state.support.and.interest.rates.going.down.
Banca. Intesa. concludes. leasing. transactions. through. its. fully-owned. subsidiary. leasing.company,.Intesa.Leasing..The.leasing.portfolio.of.Intesa.Leasing.exceeds.RUB.1.43.billion..According.to.the.Expert.Rating.Agency,.for.9.months.of.2019,.Intesa.Leasing.ranks.34th.in.Russia.for.the.number.of.leasing.transactions,.44th.for.the.amount.of.lease.payments.received,.49th.for.the.new.business.volume.
In.terms.of.leasing.portfolio.size,.Intesa.Leasing.holds.the.most.significant.positions.in.the.following. segments:. telecommunication. equipment,. office. equipment,. computers. (No..6),.power.equipment.(No..16),.ships.(sea.and.river).(No..16).and.passenger.cars.(No..36).
Leasing.financing.provided.by.the.Company.in.2019.amounted.to.RUB.990.million..There.were.297.leasing.agreements.entered.into.with.171.customers.as.lessees..Intesa.Leasing.has.effective.agreements.with.394. lessees.belonging.to.both.corporate.segment,.small.and.medium.business.companies.and.individual.entrepreneurs..The.share.of.the.largest.lessee.in.the.total.portfolio.is.6.3.%.
In.2019,.the.Company.further.participated.in.the.state.program.for.subsidizing.the.leasing.of.Russian.wheeled.vehicles.
Intesa.Leasing.is.a.universal.leasing.company.dealing.with.various.types.of.leased.assets,.with. leaseholders. from.various.Russian. industries,.mainly. transport,. food,.plastic.goods.production,. trade,. IT. services,. and. oil-extraction. equipment. services.. The. Company.purchases.assets.to.be.leased.from.both.Russian.sellers.and.under.foreign.contracts.with.international.manufacturers.
Intesa.Leasing.offers.leasing.transactions.in.14.Russian.regions,.with.the.most.active.operations.in.Yekaterinburg,.Krasnodar,.Tomsk.and.Rostov-on-Don.
In.2019,.a.major.role.is.still.played.by.transactions.involving.vehicles.and.special.equipment..Thus,.as.of.the.end.of.the.year,.the.share.of.leasing.of.trucks.and.passenger.vehicles.in.the.leasing.portfolio.amounts.to.38.6.%,.with.50.3.%.for.various.types.of.equipment,.10.2.%.for.special.wheeled.and.tracked.vehicles,.and.0.9.%.for.real.estate.(ships)..
990mln RUB
1.43bln RUB
Leasing financing
Leasing portfolio
50+39+10+1+LStructure of leasing deals in 2019, %
Equipment — 50.3 %
Trucks and cars — 38.6 %
Special wheeled and track vehicles — 10.2 %
Real estate (vessels) – 0.9 %
Business development in 2019
29
Regional Center CENTRAL
Moscow (5)
Regional Center URAL
Yekaterinburg (1)Tyumen (1)Chelyabinsk (1)
REGIONAL CENTER SOUTH
Rostov-on-Don (1)Krasnodar (2)Sochi (1)Volgograd (1)
Regional Center NORTH-WEST
St. Petersburg (2)Kaliningrad (1)
Regional Center VOLGA
Nizhny Novgorod (1) Kazan (1)Samara (1)Ufa (1)
Regional Center SIBERIAN
Novosibirsk (1)Omsk (2)Tomsk (1)Krasnoyarsk (1)Barnaul (1)Irkutsk (1)
Regional Center FAR EAST
Vladivostok (1)Khabarovsk (1)
BRANCH NETWORK
Banca.Intesa.is.widely.represented.in.the.regions.of.Russia..The.Bank’s.network.consists.of.29.branches.and.offices.in.21.Russian.regions.from.Kaliningrad.to.Vladivostok.
30
Risk management
32
The.Bank.has.introduced.a.comprehensive.state-of-the-art.risk.management.system.in.compliance.with.Russian.and.international.standards..The.existence.of.established.procedures.at.each.stage.of.the.Bank’s.operations,.subject.to.the.principle.of.responsibility.allocation.and.mandatory.control,.allows.for.comprehensive.risk.assessment.and.effective.risk.management.
The. risk.management.methods.are. regularly. revised. to. verify. compliance.with.Russian.and. international. laws,.rules.and.regulations.of.Intesa.Sanpaolo.Group..The.decision-making.system.is.logically.integrated.into.the.risk.management.system.of.the.parent.bank.
In.order.to.provide.the.Bank’s.governing.bodies.with.an.independent.and.objective.risk.management.assessment,.internal.control.and.corporate.governance.systems,.employees.and.their.managers.are.encouraged.to.improve.the.control.environment.and.risk.management.processes.in.the.Bank,.with.regular.internal.audits.conducted.by.the.Internal.Audit.Department.of.the.Bank.
Risk management
Credit risk
Market risk
Liquidity risk
Interest rate risk
Operational risk
Legal risk
Strategic risk
Compliance risk
Reputational risk
Risk.management
CREDIT RISK
Lending. is. a. key. process. in. the. Bank’s. activities.. In. this. regard,. special. emphasis. is. placed. on. the. credit. risk.assessment,. both. at. the. portfolio. level. and. at. the. level. of. each. counterparty.. The. risk. level. is. reviewed. and.assessed.in.accordance.with.the.approved.credit.policy,.which.defines.both.general.requirements.and.standardized.approaches. to. various. categories.of.borrowers,. along.with. relevant. lending. conditions. to. fit. these. categories..Credit.risk.is.assessed.based.on.clear.criteria.and.minimized.–.by.using.the.developed.risk.tools.
The. well-organized. decision-making. system. is. based. on. European. standards. and. fully. complies. with. the.requirements.of.the.Bank.of.Russia..Decision-making.is.centralized,.client.acquisition.and.risk.assessment.functions.are.separated,.quality.is.verified.both.at.the.decision-making.stage.and.during.further.control.
For.the.purposes.of.comprehensive.decision-making,.we.regularly.conduct.industry.portfolio.analysis;.the.portfolio.is.also.analyzed.by.terms,.currencies,.loan.products,.types.of.clients,.largest.loans.(loan.portfolio.concentration.risk),.level.of.overdue.debt.and.degree.of.its.coverage.by.the.loan.loss.provisions.
Risk management
33
The.credit.risk.limits.for.individual.borrowers./.groups.of.related.borrowers.are.approved.by.authorized.bodies.in.accordance.with.the.decision-making.matrix,.depending.on.the.type.of.the.client,.compliance.with.standard.terms.of.the.loan.product,.and.the.amount.of.the.total.credit.risk..A.comprehensive.assessment.of.the.borrower’s.financial.standing.and.those.of.the.main.parties.to.the.credit.transaction.is.carried.out.both.during.risk.acceptance.and.regular.review.of.the.financial.standing.in.accordance.with.the.requirements.of.the.Bank.of.Russia.and.European.practices..The.intended.use.of.the.loan,.dynamics.and.nature.of.the.turnover.on.the.borrower’s./.guarantors’.accounts.with.the.Bank.as.well.as.preliminary.and.subsequent.conditions.are.monitored..The.collateral.value.is.assessed.in.compliance.with.standard.practices,.with.its.actual.value.further.monitored.
At. the. Bank. has. been. established. a. subdivision. responsible. for. collection. and. assessment. of. negative. signals.regarding.the.borrowers,.in.order.to.respond.promptly.to.any.increase.in.credit.risks.related.to.the.counterparties.and.develop.measures.to.protect.the.Bank.
In.order.to.ensure.general.stability.of.internal.control.over.credit.risks.pursuant.to.the.requirements.of.the.Intesa.Sanpaolo. Group,. which. are. based. on. compliance. with. the. regulations. of. the. Bank. of. Italy. and. world’s. best.practices,. the. Risk. Management. Department. has. implemented. the. second. level. credit. control.. The. control. is.focused.on.the.entire.process.of.crediting,.from.credit.issue.to.various.stages.of.credit.portfolio.management.in.order.to.ensure.proper.classification.and.reservation.of.loan.portfolio.
MARKET RISK
Market.risk.is.the.risk.that.the.fair.value.of.assets.or.future.cash.flows.from.financial.instruments.will.decrease.due.to.changes.in.the.market.parameters.(interest.rates,.currency.rates,.etc.)..Market.risk.includes.currency.risk,.interest.rate.risk,.risk.of.interest.rate.change.
The.Risk.Management.Department.carries.out.assessment.of.the.market.risk.on.a.daily.basis,.and.generates.reports.for.the.Treasury.and.management.bodies.of.the.Bank.and.the.Intesa.Sanpaolo.Group..Market.risk.management.tools.represent.the.process.by.setting.open.position.limits.in.relation.to.financial.instruments.that.include.levels.of.risk.exposure.(nominal.and.market),.VaR,.PV100,.PV200,.and.stop.loss.limits,.and.open.position.limits..
Decisions.concerning.market.risk.management.are.made.by.the.Financial.Risk.Committee..Market.risk.limits.are.approved.by.the.Board.of.Directors.
LIQUIDITY RISK
Liquidity.risk.is.defined.as.the.risk.that.the.Bank.will.not.be.able.to.fulfill.its.payment.obligations.due.to.the.inability.to.obtain.funds.on.the.market.or.to.liquidate.assets..Liquidity.risk.exists.when.the.maturities.of.assets.and.liabilities.do.not.match..Control.over.mismatching.maturities.and.interest.rates.of.assets.and.liabilities.is.fundamental.to.liquidity.management.
The.Risk.Management.Department.regularly.monitors.and.analyzes.the.structure.and.parameters.of.asset.liquidity.and. identifies. requirements. pertaining. to. liquidity. with. regard. to. the. current. market. situation. and. alternative.sources.of.financing.
The.Bank.has.introduced.a.liquidity.stress-testing.and.forecasting.system,.which.allows.daily.monitoring.of.the.Bank’s.assets,.liabilities.and.cash.flows,.as.well.as.forecasts.the.Bank’s.requirements.for.financing,.depending.on.the.expected.market.conditions.and.business.trends.
Decisions.on.liquidity.management.are.made.by.the.Financial.Risk.Committee.and.implemented.by.the.Treasury.Department..The.Bank.constantly.introduces.new.standards.for.liquidity.risk.monitoring.and.management.based.on. the.valid.Basel. requirements. for.banking. supervision.and.according. to. the. Intesa.Sanpaolo.Group. liquidity.guidelines.
The.Bank.regards.a.high. level.of. liquidity.as.a.priority.and.maintains.a.well-balanced.portfolio.of.highly. liquid.assets..The.adopted.requirements.for.measuring.and.monitoring.liquidity.risk.fully.comply.with.the.Bank.of.Russia’s.requirements.and.Intesa.Sanpaolo.Group.guidelines.
Risk management
34
INTEREST RATE RISK
Interest.rate.risk.is.defined.as.the.exposure.of.a.bank’s.condition.to.adverse.movements.in.interest.rates..The.Bank.is.exposed.to.interest.rate.risk.mainly.as.a.result.of.lending.at.fixed.interest.rates,.in.amounts.and.for.periods.other.than.those.of.term.deposits.at.floating.interest.rates.
The.Financial.Risk.Committee.of.the.Bank.is.mainly.responsible.for.implementing.and.coordinating.strategies.and.policies.relating.to.the.Bank’s.interest.rate.risk.and.the.method.for.measuring.that.risk,.in.full.compliance.with.Intesa.Sanpaolo.Group.guidelines..The.Bank’s.Board.of.Directors.is.responsible.for.approving.the.limits.for.interest.rate.risk.exposure.
The.Bank.uses.the.following.methods.to.measure.interest.rate.risk:.sensitivity.of.fair.value,.which.is.measured.by.changes.in.the.fair.value.of.assets.and.liabilities.resulting.from.a.symmetrical.shift.in.discount.curves,.and.sensitivity.of.the.interest.margin.which.defines.the.short-term.impact.on.the.interest.margin.of.assets.and.liabilities.with.the.appliance.of.a.symmetrical.shift.in.discount.curves.
Periodic.reporting.on.interest.rate.risk.exposure.is.prepared.for.the.Bank’s.Management.Board.and.Financial.Risk.Committee.
OPERATIONAL RISK
Operational.risk.for.the.Bank.is.the.risk.of.losses.resulting.from.inadequacy.or.failures.of.internal.processes,.human.factors,.failures.of.IT-systems.and.information.security.malfunction,.and.external.events.
Operational. risk. management. is. based. on. identifying,. monitoring,. evaluating,. minimizing,. and. controlling.operational.risks.and.ensuring.their.timely.prevention.in.accordance.with.the.recommendations.of.the.Bank.of.Russia.and.the.Basel.Committee.on.Banking.Supervision,.the.requirements.of.the.Intesa.Sanpaolo.Group,.and.the.legislation.of.the.Russian.Federation.
Operational.risk.evaluation.includes.regular.evaluation.of.the.causes.of.risk.and.the.degree.of.control.over.them.as.well.as.scenario.analysis.of.operational.risk.events.performed.by.all.of.the.Bank’s.departments..Moreover,.the.Bank.has.set.aside.reserves.for.possible.losses.related.to.operational.risk.events.
Unit.heads.are.responsible.for.operational.risks.in.the.Bank.within.the.scope.of.their.unit’s.functions.
LEGAL RISK
The.Bank.pays.special.attention.to.managing.legal.risk.due.to.the.possibility.of.incurring.losses.as.a.result.of.the.violation.of.regulations.and.terms.of.concluded.contracts,.legal.errors.in.the.conduct.of.banking.activities,.and.the.imperfection.of.the.legal.system..In.conducting.its.statutory.activities,.the.Bank.strictly.follows.the.requirements.of.current.legislation.and.by-laws.
Legal.risk.management.includes.the.following.activities:.
0 monitoring.of.legislation.and.changes.to.legislation.and.regulations.in.the.field.of.legal.regulation.of.the.banking.system,.tax,.and.financial.laws;
0 legal.examination.of.the.internal.regulations.and.regulatory.documents.and.contracts.concluded.by.the.Bank.for.compliance.with.the.applicable.laws.and.other.regulatory.acts;
0 regular.analysis.of.disputable.issues.considered.with.the.participation.of.the.Bank.at.judicial.agencies; 0 study.of.the.arbitration.practice.
Risk management
35
STRATEGIC RISK
Strategic.risk,.such.as.the.risk.of.the.Bank.suffering.losses.as.a.result.of.errors.made.in.the.decision-making.process.determining.the.strategy.and.development.of.the.Bank,.is.minimized.by.means.of.a.thorough.study.of.managerial.decisions.based.on.the.preliminary.analysis.of.the.current.situation.in.the.banking.sector.and.the.prospects.of.its.development,.risk.levels,.the.actions.of.the.Bank’s.partners.and.competitors,.client.demands,.and.human,.financial.and.technical.implementation.of.scheduled.changes..Based.on.an.evaluation.of.the.above.parameters,.the.Bank.plans.its.product.range,.branch.network.development,.and.quantitative.and.qualitative.parameters.of.business.growth.
The. Bank. is. not. involved. in. any. legal. procedures. which. may. significantly. affect. its. financial. and. business.activities.
General.License.of.the.Bank.of.Russia.No..2216.dated.May.6,.2015.is.issued.for.an.indefinite.period.of.time.without.the.need.to.extend.
COMPLIANCE RISK AND RISK OF MONEY LAUNDERING AND TERRORIST FINANCING
The.compliance.control.system.as.an.obligatory.element.of.the.internal.control.system.is.constantly.being.improved.and.adapted.to.the.Bank’s.development.strategy..For.this.purpose,.in.2019.the.Bank.conducted.the. process. of. improving. the. compliance. control. procedures. connected. to. regulatory. risk. management,.including. the. construction. of. an. integrated. internal. control. system. in. the. Bank,. adaptation. of. internal.compliance.regulations.to.Group.standards,.as.well.as.comprehensive.customers’.due.diligence,.aimed.at.anti-money. laundering,. combating. terrorist. financing. and. financing.of. proliferation.of.weapons.of.mass.destruction.
The.key.objectives.of.the.compliance.function.in.the.Bank.are:.the.efficient.management.of.compliance.risks,.their.timely.identification.and.mitigation.(elimination);.providing.consultations.to.heads.of.divisions.on.the.issues.of.compliance.with.the.applicable. laws.of.the.Russian.Federation.and.generally.accepted.risk.management.standards,.as.well.as.the.standards.adopted.within.the.Intesa.Sanpaolo.Group,.assistance.in.the.staff.training.organization,.and.contribution.towards.internal.policies.and.procedures.development..The.implementation.of.these.objectives.allows.the.Bank.to.comply.with.the.recommendations.of.the.Basel.Committee.for.Banking.Supervision.in.the.area.of.minimizing.compliance.risks.
The.Bank.has.put.in.place.and.regularly.updates.its.“Internal.control.rules.for.combating.money.laundering,.terrorist.financing.and.financing.of.proliferation.of.weapons.of.mass.destruction”..This.is.a.set.of.documents.regulating. the. Bank’s. activities. in. the. field. of. anti-money. laundering,. combating. terrorist. financing. and.financing.of.proliferation.of.weapons.of.mass.destruction.(AML/CFT),.containing.a.description.of.the.totality.of.actions.performed.and.procedures.applied,.as.set.out.in.the.AML/CFT.internal.control.programs..These.rules.also.describe.the.actions.to.be.performed.by.officials.and.employees.of.the.Bank.to.ensure.internal.control.in.the.AML/CFT.field,.distribute.responsibility.zones.and.fix.time-frames.for.performing.duties.by.officials.and.employees.of.the.Bank.to.ensure.internal.control.in.the.AML/CFT.sphere.
The.results.of.2019.confirmed.the.efficiency.of.the.policies.in.place.to.manage.the.risk.of.money.laundering,.terrorist.financing.and.financing.of.proliferation.of.weapons.of.mass.destruction,.including.in.terms.of.detection,.termination.and.prevention.of.dubious.operations..Moreover,.the.Bank.kept.improving.its.compliance.control.procedures,. ensuring. efficiency. of. detection. and. suppression. of. customer. operations. at. risk,. and. that. the.processes.of.documentary.recording.of.data.(information).on.AML/CFT.issues.were.functioning.correctly;.data.on.AML/CFT.issues.was.promptly.sent.to.the.authorized.body.
Risk management
36
REPUTATIONAL RISK
Reputational.risk.directly.depends.on.how.the.Bank’s.financial.stability,.the.quality.of.services.it.provides,.and.the.nature.of.its.general.activity.are.perceived.by.the.public.
In.2019.the.Bank.controlled.and.keeps.controlling.all.aspects.of.this.risk. in.various.branches.of. its.activity.and.manages. them. accordingly.. All. customer. inquiries. are. considered. by. the. Bank.. No. customer. inquiries. remain.unanswered,.with.the.quality.of.services.being.constantly.improved..The.Bank’s.system.for.processing.inquiries.from.governmental.bodies.enables.it.to.promptly.respond.to.incoming.letters.and.perform.actions.to.eliminate.any.defects.found.
Social responsibility
38
CORPORATE VALUES
CODE OF CORPORATE ETHICS AND CORPORATE CODE OF CONDUCT
As.part.of.its.activity,.Banca.Intesa.voluntarily.takes.social.responsibility.based.on.the.following.corporate.values:.Integrity,.Transparency,.Excellence,.Equality,.Respect.for.specific.qualities,.Value.of.the.Individual,.and.Responsible.Consumption..These.values.are.enshrined.in.the.Corporate.Code.of.Conduct.which.is.a.self-discipline.tool.and.contains.a.system.of.ethical.and.moral.rules.of.conduct.voluntarily.accepted.and.shared.by.every.employee.of.the.Intesa.Sanpaolo.Group,.regardless.of.office..The.Code.may.be.reviewed.and.updated.from.time.to.time.in.order.to.keep.with.the.Bank’s.evolution.and.the.operating.environment.
Banca. Intesa. understands. the. importance. of. sustainability. and. transparency. of. the. principles. underlying. its.relations. with. stakeholders. and. confirms. the. importance. of. conveying. the. corporate. behavior. criteria. within.the.Bank.in.a.clear.and.understandable.manner..The.Bank.considers. interaction.with.stakeholders.as.the.most.important.condition.for.the.development.of.the.Bank’s.corporate.social.responsibility..Stakeholders.include.clients,.shareholders,.employees.and.suppliers,.and.even.the.environment.
The.primary.channels.of.interaction.with.stakeholders.and.coverage.of.the.Bank’s.activity.in.2019.were.as.follows:.mass. media,. the. Interfax. Corporate. Information. Disclosure. Center,. the. Bank’s. official. website,. the. internal.corporate.portal.—.intranet,.the.official.social.media.accounts.of.the.Bank,.and.the.information.and.inquiry.office.(call.center).
The. Bank’s. reports,. its. financial. performance,. information. on. affiliates,. the. list. of. insider. information,. and.information.on.issued.securities.were.disclosed.by.the.Bank.in.the.media,.on.the.website.of.the.Interfax.Corporate.Information.Disclosure.Center,.which.updates.this. information.in.real.time,.and.on.the.Bank’s.official.website,.increasing.its.transparency.and.openness.to.the.public.
All.Bank.employees.are.guided.by.the.rules.set.forth.in.the.Code.of.Corporate.Conduct,.which.defines.the.basic.standards.of.conduct.for.employees,.representatives.and.independent.experts.of.the.Bank.for.the.purpose.of.fair,.honest,.and.highly.professional.execution.of.their.duties.
By.implementing.the.principles.of.social.responsibility,.the.Bank.is.able.to.have.a.positive.impact.on.its.economic.and.social.environment,.its.employees.and.customers.and.society.as.a.whole.
Banca.Intesa.rejects.war.as.a.means.to.solve.international.disputes..In.2019,.the.Bank.did.not.perform.banking.activities. directly. or. indirectly. related. to. export,. import,. transit. or. production.of. arms,. or. to. research. into. the.production/trade.of.weapons.
Being.impartial.and.politically.independent,.the.Bank.also.does.not.participate.in.funding.of.political.parties.or.any.entities.associated.with.them.
Social.responsibility
Social responsibility
39
HR POLICY
The.Bank’s.staff.policy.is.aimed.at.attracting.the.best.specialists.and.ensuring.their.professional.development..All.HR.policies.are.based.on.strict.compliance.with.the.Constitution.of.the.Russian.Federation,.the.Labor.Code,.and.other. legal.acts.of.the.Russian.Federation..Banca.Intesa.does.not.discriminate. in. labor.and.it.guarantees.equal.rights.and.opportunities.for.all.employees..The.Bank.follows.the.principle.of.tolerance.towards.racial,.religious,.physical,.and.other.differences.of.employees.
In.2019,.the.Bank.made.a.number.of.organizational.changes.in.the.structural.units.of.the.headquarters.and.the.regional.network,.with.following.organizations.established:.Network,.Retail.and.SME.Division,.which.has.comprised.the.Call-Centre,.the.Customer.Satisfaction.Office,.Network.Support.Office,.the.SME.Business.Department,.and.the.Retail.Business.Department;.the.Corporate.and.Investment.Banking.Division.consisting.of.the.Business.Operations.Office,.the.Corporate.Relationship.Department,.and.the.Corporate.Business.Solutions.Department.
As.a.result.of.organizational.structure.optimization,.certain.business.functions.of.the.Bank.have.been.changed.and.centralized,.with.unprofitable.offices.closed,.headcount.and.the.number.of.subdivisions.optimized,.interaction.between.the.subdivisions.improved,.workload.on.staff.redistributed,.duplicated.functions.eliminated,.managers’.and. specialists’. areas. of. responsibility. delineated.. All. the. above. transformations. will. ensure. a. higher. business.performance.
In.2019,.a.new.version.of.the.Compensation.and.Remuneration.Policy.was.developed.and.adopted.to.regulate.the.basic.principles.of.the.employee.compensation.and.remuneration.system.
As.of.31.12.2019,.the.Bank.employs.1,111.people.(including.Intesa.Leasing)..The.average.number.of.years.with.the.Bank.in.the.main.age.groups.is.5.6.years.
Banca.Intesa.guarantees.its.employees.equal.opportunities.for.professional.development.and.growth..The.Bank.organized. internal. training. for. newcomers. to. ensure. their. full. adaptation.. All. employees. undergo. training. to.improve.their.skills..Employees.are.sent.to.attend.workshops.and.seminars.organized.by.special.training.centers,.as.well.as.for.training.at.the.parent.Bank.of.Intesa.Sanpaolo.Group.in.Italy.or.in.other.subsidiaries.of.the.Group..In.2019,.the.Bank’s.employees.completed.various.full-time.and.distance.learning.courses..In.2019,.all.employees.obtained.access.to.an.electronic.library.with.over.1,000.books.and.over.a.hundred.audio.books.for.professional.development.
In.2019,.the.corporate.culture.retained.trends.of.the.development.of.personal.responsibility.for.achieving.results,.increasing. performance,. business. efficiency,. and. processes. optimization.. In. 2020,. these. trends. will. continue..The. main. areas. of. development. will. be. improvement. of. business. processes,. increasing. performance. –. based.on.professional. development.of. employees,. strengthening. corporate. culture,. and. increasing. involvement.. It. is.planned.to.implement.a.number.of.digital.technology-driven.HR.management.projects.(as.related.to.collecting.information. about. personnel,. setting. goals,. and. building. a. program. for. personnel. development,. succession.pipeline.development).
HEALTH AND SAFETY
To.provide.safe. labor.conditions. in. the.head.office.and. regional.centers,.and.mitigate. the. risk.of.accidents.at.work.and.occupational.diseases,.the.Bank.arranged.regular.training.in.occupational.safety.and.health.and.electric.safety.in.2019..The.working.environment.has.been.assessed,.with.special.efforts.to.prevent.accidents.at.work.and.occupational.diseases.made..Employees.engaged.in.hazardous.operations.have.had.a.regular.physical.examination..The.local.internal.occupational.safety.documents.have.been.reviewed.to.comply.with.the.government.requirements..The.Bank.is.constantly.implementing.measures.to.improve.working.conditions.
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40
SOCIAL POLICY
Within.the.framework.of.the.adopted.policy,.Banca.Intesa.offers.its.employees.a.social.package,.with.a.guaranteed.voluntary.health.insurance.(VHI).plan.for.employees.with.more.than.one.year.of.work.experience.with.the.Bank,.as.well.as.insurance.for.employees.travelling.abroad..The.Bank.provides.preferential.terms.of.VHI.for.all.the.Bank’s.employees.and. their. relatives.. In.2019,.under. the. voluntary.health. insurance.program,. the.accident. insurance.program.for.employees.was.renewed.
Employees.with.an.open-ended.employment.contract.are.covered.by.a.unique.program.provided.by.the.Intesa.Sanpaolo.Group..The.purpose.of.the.program.is.to.provide.employees.with.assistance.in.the.event.of.certain.serious.diseases.(cancer,.open-heart.surgery,.heart.valve.replacement.surgery,.transplant.surgery,.brain.and.intracranial.diseases)..Program.allows.access. to.medical.advice.and. treatment. in.healthcare. institutions.around. the.world..Thus,.people.suffering.from.serious.diseases.will.receive.the.best.medical.treatment.available.in.the.world.
In.2019,.the.international.employee.insurance.program.was.extended.for.three.years,.and.it.is.now.funded.entirely.by.Intesa.Sanpaolo.Group.
Employees. of. all. categories,. as. well. as. their. relatives,. also. have. an. opportunity. to. apply. for. the. program. of.international.comprehensive.insurance.against.oncology.and.other.serious.diseases.“Medicine.without.Borders”,.which.includes.coverage.for.four.types.of.treatment.(oncology.treatment,.coronary.artery.bypass.surgery,.heart.valve.transplantation/restoration,.transplantation.of.organs./.bone.marrow.from.the.living.donor).
The.Bank’s.employees.have.preferential.lending.terms..Within.the.framework.of.various.corporate.programs,.the.Bank’s.staff.has.access.to.a.corporate.package.with.discounts.in.various.stores,.fitness.clubs,.movie.theaters.and.restaurants.
The.Bank.actively.develops.corporate.volunteering.programs.and.visits.orphanages.and.cooperates.with.charitable.foundations.
ENVIRONMENTAL FRIENDLINESS
In.2019,.the.Bank.did.not.sponsor.any.activities.that.may.cause.harm.to.the.environment.in.accordance.with.the.environmental.policy.of.Banca.Intesa..The.Bank.traditionally.takes.part.in.two.environmental.initiatives:.Earth.Hour.and.World.Environment.Day.. Information.about.the.events.was.placed.on.the.Bank’s.official.website,. intranet.internal.portal.and.social.media,. in.order. to. raise.environmental.awareness.and.encourage. interest. in. tackling.climate.change.. In.2019,.the.Bank.also. joined.the.national.campaign.Bike.to.Work.supported.by.the.Moscow.Transport.Department.
By.supporting.the.ideas.of.energy.and.heat.conservation,.adopting.responsible.water.consumption,.and.recycling.paper.and.other.materials,. the.Bank. is. reducing. its.environmental. footprint.. The.Bank.organized.collection.of.plastic.and.previously.used.batteries.for.disposal..In.order.to.save.paper,.the.Bank’s.printers.are.set.to.double-sided.printing.by.default,.but.preference.is.given.to.electronic.formats.
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41
SUPPORT OF CULTURE, CHARITY AND BUSINESS PROJECTS
In.2019,.Banca.Intesa.continued.its.activities.aimed.at.supporting.and.strengthening.Russian-Italian.cooperation.in.the.field.of.culture.and.art,.as.well.as.took.an.active.part.in.socially.significant.projects,.acted.as.a.partner.and.organizer.of.a.number.of.large-scale.business.initiatives.
EURASIAN ECONOMIC FORUM IN VERONA
The.XII.Eurasian.Economic.Forum.took.place.in.Verona.(Italy).on.October.24-25,.2019..Issues.of.Eurasian.integration,.cooperation.between.companies.from.different.countries.and.prospects.for.development.of.key.sectors.of.the.economy.were.discussed.at.the.Forum..The.Forum.was.organized.by.the.Italian.non-profit.Association.Conoscere.Eurasia. together. with. the. Roscongress. Foundation. and. St.. Petersburg. International. Economic. Forum. with. the.support.of.Banca.Intesa.and.Intesa.Sanpaolo.Group..
The. Forum. was. opened. by. a. special. session. attended. by. Igor. Sechin,. Chief. Executive. Officer,. Chairman. of.the.Management.Board.of.PJSC.Rosneft.Oil.Company..The. speakers. included.Romano.Prodi,.President.of. the.Foundation.for.Worldwide.Cooperation,.Prime.Minister.of.Italy.(1996-1998,.2006-2008);.Robert.Dudley,.Group.Chief.Executive,.BP;.Michael.Harms,.General.Director.of.the.German.Committee.on.Eastern.European.Economic.Relations;. Emma. Marcegaglia,. President. of. Eni. and. President. and. CEO. of. Marcegaglia. Holding. S.p.A.;. Ivan.Glasenberg,.Chief.Executive.Officer.of.Glencore.International.AG;.Andrey.Kostin,.President.and.Chairman.of.the.Management.Board,.VTB.Bank.
The.Forum.has.gathered.together.more.than.1,200.people.representing.companies.and.organizations.from.33.countries,.political.and.public.figures,.experts,.diplomats.and.journalists.
The.high.profile.of.participants.confirms.the.growing.importance.of.the.Forum.as.a.crucial.and.effective.international.discussion.platform.
The. entertainment. program. of. the. XII. Eurasian. Economic. Forum. included. a. symphonic. music. concert. by. the.Tchaikovsky.State.Academic.Orchestra.directed.by.Vladimir.Fedoseyev..
BUSINESS SEMINARS
In.2019,.numerous.business.seminars,.dedicated.to.the.development.of.trade.and.economic.relations.between.Russia,.Italy.and.a.number.of.other.European.countries,.were.organized.with.the.support.of.Banca.Intesa..Business.meetings.were.held.in.Russia,.Italy,.Austria,.Switzerland.and.Belgium..Business.seminars.were.organized.by.the.Association.Conoscere.Eurasia.in.cooperation.with.the.Roscongress.Foundation.and.St..Petersburg.International.Economic.Forum..
In.Russia,.business.seminars.took.place.in.Krasnodar,.Yekaterinburg,.Barnaul.and.Nizhny.Novgorod..These.events.have.added.momentum.to.the.development.of.the.Bank’s.business.in.these.regions..At.the.business.seminars,.it. was. repeatedly. emphasized. that. maintaining. communication. between. Russian. and. Italian. entrepreneurs. is.essential.for.launching.new.businesses.and.strengthening.trade.and.economic.cooperation.between.the.countries..
The.main.audience.of.foreign.events.was.business.people.who.either.do.business.in.or.with.Russia,.or.are.interested.in.opportunities.offered.by.the.Russian.market.
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SPIEF’19
Banca. Intesa. and. Association. Conoscere. Eurasia. took. an.active.part.in.the.XXIII.St..Petersburg.International.Economic.Forum. (SPIEF’19).. There,. with. the. support. of. the. Bank,. a.number. of. panel. sessions. were. organized. regarding. the.issues.of.effective.interaction.between.large.companies.from.Italy.and.Russia.as.well.as.the.development.of.cooperation.and.the.exchange.of.innovative.experience.among.small.and.medium.enterprises.of.the.two.countries.
As. part. of. the. entertainment. program. maestro. Giuseppe. Acquaviva. and. his. Teatro. Carlo. Felice. Philharmonic.Orchestra.from.Genoa.gave.a.concert.in.the.Mariinsky.Theater.
Banca.Intesa.supported.the.creation.of.an.Italian.restaurant.Stella.d’Italia.(“Star.of.Italy”).at.the.SPIEF’19.venue..This.year,.the.forum.participants.were.able.to.taste.the.traditional.dishes.of.the.Italian.region.of.Liguria,.which.were.prepared.under.the.guidance.of.the.Michelin.star.chef.Ivano.Ricchebono.
FILM FESTIVALS
Banca. Intesa. is. a. long-term.partner.and.organizer.of.a.number.of. Italian. film. festivals. in.Russia,.providing.an.opportunity.for.the.Russian.audience.to.see.both.contemporary.and.classic.Italian.films.
From Venice to Moscow
In. 2019,. Banca. Intesa. sponsored. the. 10th. Anniversary. Film. Festival. From. Venice. to. Moscow.. The. traditional.retrospective.organized.by.the. Italian. Institute.of.Culture. in.Moscow.in.collaboration.with.the.Venice.Biennale.introduced.Russian.audiences.to.a.selection.of.Italian.films.presented.at.the.75th.Venice.International.Film.Festival..The.Festival.in.Moscow.opened.with.the.film.“Abduction.of.Caravaggio”.by.Roberto.Ando..Guests.of.the.Festival.were.Wilma.Labate,.the.director.of.the.documentary.“Goodbye,.Saigon!”,.Emanuele.Scaringi,.a.young.director.of.the.drama.“The.Armadillo’s.predictions”,.and.Stefano.Consiglio,.the.author.of.“Long.Live.Guiseppe!”..The.films.of.the.program,.as.always,.touch.a.variety.of.subjects.and.differ.in.style.and.language,.which.allows.you.to.create.an.up-to-date. image.of.modern. Italian.cinematography,.presented.at.the.most.prestigious. international.film.festival.
In.the.section.“Italian.classics”.a.masterpiece.of.world.cinema.—.a.restored.film.“Twentieth.century”.by.Bernardo.Bertolucci.—.was.presented.to.the.audience..
The.festival.included.master.classes.by.Italian.directors.
N.I.C.E.
The.Bank.became.the.General.Partner.of.the.N.I.C.E..(New.Italian.Cinema.Event).in.Novosibirsk.in.April.2019.
The.film.festival.was.supported.by.the.Italian.Institute.of.Culture.in.Moscow.and.the.Italian.Embassy..The.main.goal.of.the.festival.is.to.promote.new.Italian.cinema.in.the.world..N.I.C.E..festival.takes.place.not.only.in.Russia,.but.also.in.other.countries..The.festival.is.especially.popular.in.the.United.States.and.China..The.program.of.the.current.film.forum.was.based.on.the.debut.films.by.young.Italian.directors..In.2019,.the.poster.of.the.festival.included.six.films.of.different.genres.and.Franco.Zeffirelli’s.classic.film.“Tea.with.Mussolini”.
The.opening.film.—.“There.is.no.place.like.home”.directed.by.Gabriele.Muccino.—.was.presented.by.the.festival’s.guest.of.honor,.actress.Viviana.del.Bianco..
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LA TUA ITALIA
In.2019,.the.Bank.continued.to.support.the.www.latuaitalia.ru.project.of.the.Embassy.of.the.Republic.of.Italy.in.the.Russian.Federation.to.promote.Italian.culture.and.intensify.tourist.exchange.between.Russia.and.Italy.
The.project.aims.to.provide.Russian.users.with.an.innovative.information.portal.that.combines.key.cultural.events,.tourist.routes.in.the.regions.and.cities.of.Italy,.and.contains.tips.for.those.who.are.going.to.visit.this.country..
During.the.years.of.cooperation.between.the.Bank.and.the.Italian.Embassy.in.this.project,.La.Tua.Italia.website.has.become.the.most.popular.Internet.resource.about.Italy.in.Russia..More.than.100,000.visitors.use.this.portal.every.month.to.plan.their.trips.to.Italy..
TRIPS OF RUSSIAN AND ITALIAN WRITERS
In.September.2019,.a.group.of.Italian.writers.visited.Krasnodar.and.Sochi..This.trip.continued.a.series.of.trips.of.Italian.writers.to.Russia.and.of.Russian.writers.to.Italy..This.project.is.implemented.by.the.Association.Conoscere.Eurasia. with. the. support. of. Banca. Intesa. and. in. cooperation. with. the. Federal. Agency. for. Press. and. Mass.Communications.(Rospechat).
In.Krasnodar,.the.Italian.writers.met.with.students.of.the.Kuban.State.University,.got.acquainted.with.the.history.of.the.region,.visited.the.Literary.Museum.and.met.with.local.poets.and.prose.writers..In.Sochi,.the.Italian.guests.visited. the. Olympic. University. and. Sirius. Educational. Center.. Traditionally,. a. collected. book. is. planned. to. be.published.based.on.the.experiences.of.the.trip,.to.be.translated.into.Russian.
Banca.Intesa.have.been.supported.the.trips.of.Russian.and.Italian.writers.since.2011.in.order.to.deepen.cultural.ties.between.Russia.and.Italy.
RADUGA LITERARY AWARD
The.Bank.continued.to.support.the.annual.Raduga.Literary.Award.for.young.writers.and.translators.from.Russia.and.Italy..This.time.the.award.was.presented.in.the.Italian.city.of.Verona..
Over.the.ten.years.of.its.existence,.Raduga.Award.has.published.works.by.100.aspiring.writers.and.translators.from.Italy.and.Russia,.and.about.5,000.young.talents.have.participated.in.the.competition.over.the.years.
The.works.submitted.for.the.contest.always.show.the.desire.of.young.authors.to.fight.for.a.fair.society..The.2019.winners.speak.about.their.love.for.older.generations,. their. rejection. of. the. dominance. of. technology. in. human.relationships.and.their.attention.to.social.aspects.of.our.lives..
The.10th.anniversary.of.Raduga.brought.us.back.to.Verona,.where.this.award.was.born..This.anniversary.has.reaffirmed.the.need.for.free.interweaving.of.cultures,.which.contributes.to.deepening.relations.between.Italy.and.Russia.
The.award.is.organized.by.the.Association.Conoscere.Eurasia.together.with.the.Maxim.Gorky.Literature.Institute..In.2019,.Raduga.Award.was.held.in.partnership.with.the.Russkiy.Mir.Foundation.and.under.the.patronage.of.the.Federal.Agency.for.Press.and.Mass.Communications.(Rospechat).
COOPERATION WITH RUSSIAN NATIONAL LIBRARY
In.2019,.the.Bank.completed.a.three-year.project.with.the.Russian.National.Library.to.digitize.a.unique.archive.of.letters.addressed.to.an.Italian.scientist,.philosopher.and.theologian.of.XVIII.century.Angelo.Calogera..
Social responsibility
44
Project.to.digitize.letters.to.Angelo.Calogera.is.an.important.contribution.to.the.preservation.of.the.historical.and.cultural.heritage.of.Italy.and.Europe..Digitized.materials.will.become.a.valuable.open.source.of.knowledge.available.to.a.wide.range.of.people.studying.history.both.in.Italy.and.in.Russia.
“THE SUMMER GARDEN 315” FESTIVAL
For. the. ninth. time,. Banca. Intesa. partnered. with. The. Imperial. Gardens. of. Russia,. the. international. festival. of.landscape.art.in.Saint.Petersburg..This.time.it.took.place.in.the.famous.Summer.Garden.and.was.dedicated.to.the.315th.anniversary.of.the.oldest.park.in.Saint.Petersburg..The.Summer.Garden.was.decorated.with.floral.and.landscape.compositions,.guests.of.the.festival.were.offered.an.extensive.entertainment.program,.installations.and.exhibitions.about.milestones.in.the.history.of.this.piece.of.landscape.art.
The.Imperial.Gardens.of.Russia.is.organized.by.the.State.Russian.Museum..
SLAVIA MAGAZINE
In.2019,.the.Bank.continued.to.support.Slavia,.a.magazine.publishing.articles.and.scientific.studies.on.culture,.economy.and.historical.heritage.of.the.Slavic.nations..Slavia.is.a.quarterly.periodical.that.has.been.published.since.1992.in.Italian..The.largest.libraries.and.universities.of.Italy.are.among.its.subscribers.
COLLABORATION WITH THE RUSSIAN PUBLISHERS ASSOCIATION
With.the.assistance.of.the.Bank,.a.ceremony.as.part.of.the.Red.Square.Book.Festival.was.held.in.June.2019.to.award.the.winners.of.the.annual.national.contest.Best.Books.of.the.Year,.organized.by.the.Russian.Publishers.Association..This. is. the.biggest.and.the.most.prestigious.Russian.publishing.competition,.held.since.1992..The.scale.of.the.competition.allows.to.discover.new.publishing.names.and.original.publishing.projects..153.various.publishing.houses.submitted.applications.to.participate.in.the.contest.in.2019.
ITALIAN REPUBLIC DAY
In.2019,.the.Bank.provided.annual.support.in.arranging.a.reception.at.the.Italian.Embassy.dedicated.to.the.Italian.national. holiday,. the. Republic. Day.. More. than. a. thousand. guests. —. politicians,. business. people. and. cultural.figures.from.both.countries.—.gathered.at.the.Berg’s.mansion.in.Moscow.to.celebrate.the.73rd.anniversary.of.the.proclamation.of.the.Italian.Republic.
RZHEV MEMORIAL TO THE SOVIET SOLDIER
In.2019,.the.Bank.took.part.in.a.joint.project.with.the.Russian.Military.Historical.Society.regarding.the.creation.of.the.Rzhev.Memorial.to.the.Soviet.Soldier.in.the.Tver.Region..The.memorial.complex.is.being.built.on.the.site.of.bloody.battles.near.Rzhev.in.1942-1943..A.25-meter-high.figure.of.a.soldier.on.a.high.artificial.hill.will.stand.near.the.M9.highway..The.names.of.the.fallen.will.be.immortalized.on.steel.plates.and.in.the.multimedia.exhibition.of.the.museum.pavilion.to.become.a.Victory.Museum.branch.
Corporate governance
46
MANAGEMENT BODIES OF THE BANK
BOARD OF DIRECTORS
In.2019,.Michele.Dapri.and.Alberto.Mancuso.resigned.from.the.Bank’s.Board.of.Directors..
In. 2019,. the. Annual. General. Meeting. of. Shareholders. elected. a. new. composition. of. the. Board. of. Directors.comprising.9.members,.including.Massimo.Torchiana.and.Elio.Lolla:
Antonino Fallico Chairman.of.the.Board.of.Directors.(elected.on.29.04.2019)
Salvatore Catalano Deputy.Chairman.of.the.Board.of.Directors.(elected.on.29.04.2019)
Armando Selva Member.of.the.Board.of.Directors
Christophe Velle, Jean-Paul Member.of.the.Board.of.Directors
Andrea Mascetti Member.of.the.Board.of.Directors
Gianluca Cugno Member.of.the.Board.of.Directors
Stefano Favale Member.of.the.Board.of.Directors
Massimo Torchiana Member.of.the.Board.of.Directors
Elio Lolla Member.of.the.Board.of.Directors
Corporate.governance
Corporate governance
47
INFORMATION ON THE MEMBERS OF THE BOARD OF DIRECTORS OF BANCA INTESA AS OF DECEMBER 31, 2019
Antonino Fallico
Born.in 1945
Education University.of.Catania.(Italy),.Economics.and.Commerce,.1969
Primary.employment Head.of.the.Representative.Office.of.Intesa.Sanpaolo.S.p.A..(Italy).in.Moscow
PEP. no
Stake.in.the.share.capital 0
Stake.of.ordinary.shares 0
Transactions.with.the.Bank’s.shares. no
Salvatore Catalano
Born.in. 1941
Education Catholic.University.of.the.Sacred.Heart,.Milan.(Italy),.Jurisprudence,.1968
Primary.employment Attorney.at.Salvatore.Catalano.Advocates.Bureau
PEP. no
Stake.in.the.share.capital 0
Stake.of.ordinary.shares 0
Transactions.with.the.Bank’s.shares. no
.Armando Selva
Born.in. 1952
Education Polytechnic.University.of.Milan.(Italy),.Architecture,.1976
Primary.employment Private.entrepreneur.(Italy)
PEP. no
Stake.in.the.share.capital 0
Stake.of.ordinary.shares 0
Transactions.with.the.Bank’s.shares. no
.Christophe Velle, Jean-Paul
Born.in. 1974
Education University.of.Metz.(France),.Public.Law.and.Jurisprudence,.2000
Primary.employment Intesa.Sanpaolo.Holding.International.S.A..(Luxembourg),.General.Manager
PEP. no
Stake.in.the.share.capital 0
Stake.of.ordinary.shares 0
Transactions.with.the.Bank’s.shares. no
Corporate governance
48
.Andrea Mascetti
Born.in. 1971
Education University.of.Milan.(Italy),.Jurisprudence,.1996
Primary.employment Attorney.at.Mascetti.Advocates.Bureau
PEP. no
Stake.in.the.share.capital 0
Stake.of.ordinary.shares 0
Transactions.with.the.Bank’s.shares. no
.Gianluca Cugno
Born.in. 1968
Education Bocconi.University,.Milan.(Italy),.Business.Administration,.1992
Primary.employment Intesa.Sanpaolo.S.p.A,.Head.of.International.Department,.Corporate.&.Investment.Banking
PEP. no
Stake.in.the.share.capital 0
Stake.of.ordinary.shares 0
Transactions.with.the.Bank’s.shares. no
.Stefano Favale
Born.in. 1973
Education Free.University.LUISS.Guido.Carli,.Roma.(Italy),.Economics.and.Finance,.1997
Primary.employment Intesa.Sanpaolo.S.p.A.,.Head.of.Global.Transaction.Banking,.Corporate.and.&.Investment.Banking
PEP. no
Stake.in.the.share.capital 0
Stake.of.ordinary.shares 0
Transactions.with.the.Bank’s.shares. no
.Massimo Torchiana
Born.in. 1966
Education Luigi.Bocconi.University,.Milan.(Italy),.Business.Economics,.1992
Primary.employment Intesa.Sanpaolo.Bank.Luxembourg.S.A.,.Sole.Executive.Body,.Managing.Director
PEP. no
Stake.in.the.share.capital 0
Stake.of.ordinary.shares 0
Transactions.with.the.Bank’s.shares. no
Corporate governance
49
.Elio Lolla
Born.in. 1955
Education University.of.Pavia.(Italy),.Jurisprudence,.1980
Primary.employment Fininvest,.Advisor./.Member.of.the.Board.of.Directors
PEP. no
Stake.in.the.share.capital 0
Stake.of.ordinary.shares 0
Transactions.with.the.Bank’s.shares. no
INFORMATION ON THE CHAIRMAN OF THE MANAGEMENT BOARD AND MEMBERS OF THE MANAGEMENT BOARD OF THE BANK
Chief Executive Officer: Acting Chairman of the Management Board, as of 23.05.2019
.Olga Lein
Born.in. 1955
Education Moscow.State.Institute.of.International.Relations.under.MFA.of.USSR,.Faculty.of.International.Economic.Relations,.1977
Primary.employment Banca.Intesa,.Deputy.Chairman.of.the.Management.Board
PEP. no
Stake.in.the.share.capital. 0
Stake.of.ordinary.shares 0
Transactions.with.the.Bank’s.shares no
May 23, 2019 – Giuseppe Giampietro appointed Chairman of the Bank’s Management Board.
Chief Executive Officer: Chairman of the Management Board, as of 31.12.2019
Giuseppe Giampietro
Born.in. 1969
Education University.Gabriele.D’Annunzio.Chieti,.1994
Major Economy.and.Trade
Primary.employment Banca.Intesa,.Chairman.of.the.Management.Board
PEP. no
Stake.in.the.share.capital. 0
Stake.of.ordinary.shares 0
Transactions.with.the.Bank’s.shares no
Corporate governance
50
COLLECTIVE EXECUTIVE BODY: MANAGEMENT BOARD
INFORMATION ON THE MANAGEMENT BOARD OF BANCA INTESA AS OF DECEMBER 31, 2019
Giuseppe Giampietro (born.in.1969),.Chairman.of.the.Management.Board.since.May.23,.2019.(see.education.and.primary.employment.information.above)
Olga Lein (born.in.1955),.Acting.Chairman.of.the.Management.Board.until.May.23,.2019,.and.Deputy.Chairman.of.the.Management.Board.since.May.23,.2019.(see.education.and.primary.employment.information.above)
Tatyana Pavlycheva Member of the Management Board / Head of Accounting, Planning and Control Group / Chief Accountant
Born.in. 1971
Education Financial.Academy.under.the.Government.of.the.Russian.Federation,.1993
Major Accounting,.Control.and.Administrative.Analysis
Primary.employment Banca.Intesa,.Member.of.the.Management.Board./.Head.of.Accounting,.Planning.and.Control.Group./.Chief.Accountant
PEP. no
Stake.in.the.share.capital. 0
Stake.of.ordinary.shares 0
Transactions.with.the.Bank’s.shares no
Elena Grimaylo Member of the Management Board
Born.in. 1971
Education Moscow.State.Pedagogical.University,.1993
Institute.of.Advanced.Training.and.Professional.Upgrade.on.Banking.and.Finance.at.the.Financial.University.under.the.Government.of.the.Russian.Federation,.Economist,.1997
Major Foreign.Languages
International.Economic.Relations
Primary.employment Banca.Intesa,.Chief.Credit.Officer
PEP. no
Stake.in.the.share.capital. 0
Stake.of.ordinary.shares 0
Transactions.with.the.Bank’s.shares no
Irina Vasina Member of the Management Board
Born.in. 1973
Education State.University.of.Management,.2002
Major Management
Primary.employment Banca.Intesa,.Operational.Director
PEP. no
Stake.in.the.share.capital. 0
Stake.of.ordinary.shares 0
Transactions.with.the.Bank’s.shares no
Corporate governance
51
Oleg Dzhus Member of the Management Board
Born.in. 1964
Education Moscow.Financial.Institute,.Economist,.1989
Major Finances.and.Credits
Primary.employment Banca.Intesa,.Head.of.Treasury.Department
PEP. no
Stake.in.the.share.capital. 0
Stake.of.ordinary.shares 0
Transactions.with.the.Bank’s.shares no
REMUNERATION FOR MEMBERS OF THE BANK`S MANAGEMENT BODIES, AND OTHER PERSONS ACCEPTING RISKS
The.elaboration.of.the.principles.and.criteria.to.determine.the.amount.of.remuneration.for.members.of.the.Board.of.Directors.falls.within.the.competence.of.the.General.Meeting.of.Shareholders.
The. decisions. on. payment. of. remuneration. to. members. of. the. Board. of. Directors. in. connection. with. their.participation.in.this.management.body.of.the.Bank.are.made.at.the.Annual.General.Meeting.of.Shareholders..
Information.about.the.amount.and.types.of.remuneration.that.were.paid.by.the.credit.institution.to.the.members.of.the.Board.of.Directors:
0 The.Annual.General.Meeting.of.Shareholders.of.Banca.Intesa.decided.on.April.01,.2019.(Protocol.No.1/2019).to.pay.the.remuneration.for.2018.to.the.members.of.the.Board.of.Directors.in.the.amount.of.EUR.228,000;
0 The.members.of. the.Board.of.Directors.of. the.Bank.were.also. reimbursed. for. the.costs.and.expenses.related.to.their.work.(accommodation.and.travelling.costs,.etc.).in.the.total.amount.of.RUB.3,971,826.76.which.was.paid.out.by.the.issuer.during.the.relevant.reporting.period.
For.2019,.remuneration.payments.to.members.of.the.Bank’s.Board.of.Directors.will.be.paid.in.the.manner.and.in.the.amount.approved.by.the.General.Meeting.of.Shareholders.of.Banca.Intesa.in.2020.
Information.on.the.amount.of.benefits.for.the.Board.of.Directors’.members.is.published.on.the.Bank’s.website.www.bancaintesa.ru.in.the.Information.Disclosure.section.
The.Payment.and.benefits.policy.of.Banca.Intesa.adopted.by.the.Board.of.Directors.on.September.30,.2019,.Protocol.No.6/2019,.sets.out.the.principles.and.the.basic.elements.of.the.Bank’s.remuneration.of.labor.for.employees..The.approval.of.the.Payment.and.benefits.policy.is.included.in.the.responsibilities.of.the.Board.of.Directors..
The.Payment.policy.was.developed.towards:
0 consistency.with.the.long-term.strategies.and.objectives.of.the.Intesa.Sanpaolo.Group; 0 links.to.the.business.results.of.the.Intesa.Sanpaolo.Group; 0 all.the.assumed.risk.types; 0 .matching.the.capital.and.liquidity.positions.required.to.carry.out.activities; 0 the.structure,.excluding.unreasonable.incentives.(remuneration).which.might.result.in.the.violation.of.the.
rules.or.assumption.of.excessive.risks; 0 consistency.with.the.provisions.of.the.applicable.laws.of.the.Russian.Federation.
The.remuneration.system.of.the.Bank.includes.the.fixed.and.the.variable.part.of.the.total.income.
Corporate governance
52
The.ratio.of.the.fixed.and.variable.parts. in.the.structure.of.the.total. income.varies.depending.on.the.position,.specific.responsibility,.and.risk.level.for.the.Bank.resulting.from.the.employee’s.activities.
The.variable.part.of.the.employees’.total.income.depends.on.the.results.of.their.activity,.including.the.negative.financial.consequences.arising.in.connection.with.the.realization.of.assumed.risks.
Pursuant. to. the.Payment.and.benefits.policy.of.Banca. Intesa,. the. following.performance. indicators. are. set. as.minimum.conditions.for.the.payment.of.bonuses:
0 CET1.—.Common.Equity.Tier.equates.at.least.to.the.RAF-induced.limit.(RAF.—.Risk.Appetite.Framework),.in.accordance.with.the.Bank’s.regulations.on.risk-appetite;
0 NSFR.—.Net.Stable.Funding.Ratio.equates.at.least.to.the.RAF-induced.limit.in.accordance.with.the.Bank’s.regulations.on.risk-appetite;
0 No.loss.or.total.gross.profit.before.income.tax.on.continuing.operations,.net.proceeds.from.repurchase.of.the.Bank’s.own.liabilities,.income.from.fair.value.revaluation.of.the.Bank’s.liabilities.from.non-recurrent.operations.(according.to.IFRS).
REMUNERATION TO THE BOARD MEMBERS OF BANCA INTESA IN 2019
Remuneration types Amount, RUB 1 Description
Short-term benefits
Fixed.remuneration 56,658,533.36Fixed.remuneration.paid.—.office.salaries,.compensation,. incentive.and.social.payments.not.related.to.performance.results.
Variable.remuneration 5,733,081.00Variable.remuneration.paid.—.compensation.and.incentive.payments.related.to.performance.results.
Other.remunerations.including.in.other.forms 2,694,171.05
Social.security.allowances 6,884,949.02
Long-term remuneration 859,962.00 Long-term.remuneration.paid.in.the.reported.year.
The total sum of the deferred long-term remunerations of members of the Board for 2019
0Deferred.remuneration.shall.be.paid.in.cash.throughout.2020-2022.and.shall.be.adjusted.up.to.nil.
REMUNERATION TO OTHER EMPLOYEES ACCEPTING RISKS OF BANCA INTESA FOR 2019
Remuneration types Amount, RUB 1 Description
Short-term benefits
Fixed.remuneration 113,065,070.49Fixed.remuneration.paid.—.office.salaries,.compensation,. incentive.and.social.payments.not.related.to.performance.results.
Variable.remuneration 0Variable.remuneration.paid.—.compensation.and.incentive.payments.related.to.performance.results.
Other.remunerations.including.in.other.forms 3,833,939.10
Social.security.allowances 18,184,890.50
Long-term remuneration 0 Long-term.remuneration.paid.in.the.reported.year.
The total sum of deferred long-term remuneration to other employees accepting risks for 2019
0Deferred.remuneration.shall.be.paid.in.cash.throughout.2020-2022.and.shall.be.adjusted.up.to.nil.
1. Remuneration.amounts.are.given.in.this.section.according.to.the.information.of.the.annual.financial.statements.of.Banca.Intesa.for.2019.
Corporate governance
53
According.to.the.2019.results,.there.were.no.adjustments.in.the.deferred.part.of.remuneration.for.members.of.the.Board.of.Directors.and.other.employees.accepting.risks.
In.2019,.RUB.2,464,470.16.of.severance.was.paid.to.employees.accepting.risks..No.severance.payments.were.made.to.members.of.the.Board.of.Directors.in.2019.
No.early.payments.of.long-term.remuneration.at.dismissal.were.made.in.2019.
Corporate governance
54
LARGE TRANSACTIONS
In.2019,.the.Bank.did.not.conduct.any.transactions.recognized.as.major.transactions.in.accordance.with.Federal.Law. No.208-FZ. “On. Joint-Stock. Companies”. as. well. as. other. transactions. governed. by. the. Bank. Charter’s.regulations.on.major.transactions.
RELATED PARTY TRANSACTIONS
On.April.01,.2019,.at.the.Annual.General.Shareholders’.Meeting,.a.decision.was.made.to.approve.related.party.transactions.that.might.be.effected.by.the.Bank.in.the.normal.course.of.business.in.2019.within.the.approved.limits,.prices.or.rates,.and.in.the.absence.of.such.limits.–.at.the.market.prices.and.rates.for.similar.transactions..
The.specified.decision.on.the.approval.of.related.party.transactions.covered.the.transactions.with.the.following.contractors:
0 Intesa.Sanpaolo.S.p.A.; 0 Banca.IMI; 0 Intesa.Sanpaolo.Bank.Luxemburg.S.A.; 0 .Intesa.Sanpaolo.Holding.International.S.A.; 0 .Intesa.Sanpaolo.Bank.Ireland.PLC; 0 .Pravex.Bank; 0 .Intesa.Sanpaolo.Group.Services.S.c.p.A.; 0 .Intesa.Sanpaolo.Card.Ltd..(ISPC); 0 .Privredna.banka.Zagreb; 0 JSC.Intesa.Leasing.
A.reference.to.the.information.disclosed.by.Banca.Intesa.in.the.form.of.quarterly.reports.and.communications.on. corporate. events. in. accordance. with. the. provisions. of. the. Regulation. of. the. Bank. of. Russia. No.. .454-P.“On. Information. Disclosure. by. Securities. Issuers”. at. the. internet-page. of. Interfax. Corporate. Information.Disclosure.Center.http://www.e-disclosure.ru/portal/company.aspx?id=1891,.and.on. the.Bank’s.official.website..http://www.bancaintesa.ru/ru/about/disclosure/.
REPORT ON DIVIDENDS PAYOUT
In.2019,. the.Annual.General.Meeting.of. Shareholders.decided.not. to.declare.or.pay. the.Bank’s. shareholders.dividends.on.ordinary.stocks.for.2018.
INFORMATION ON VOLUMES OF USED ENERGY RESOURCES
Information.on.volumes.of.energy.resources.used.in.2019.in.physical.and.in.monetary.terms:
No. Description Unit Quantity Amount, RUB
1 Water m3 5,710.10 287,899.54
2 Electric.power. kW 2,510,488.52 16,682,402.15
3 Thermal.energy. Gk 1,677.81 2,947,410.77
4 Petrol. L 15,737.74 744,149.97
5 Diesel L 935.00 44,298.55
Development prospects in 2020
56
CORPORATE BLOCK DEVELOPMENT
The.Bank.will.continue.across.2020.the.course.on.strengthen.ties.with.key.relationship.accounts.in.the.Russian.Federation,.with.the.aim.of.broadening.the.base.of.portfolio.products.offered.and.supporting.clients.on.a.360.degrees.basis.
Looking.ahead,.Corporate.Department.aims.at.deepening.the.focus.on.product.delivery,.leveraging.the.expertise.and.tight.cooperation.with.Intesa.Sanpaolo..As.a.fact,.in.2019.an.ad-hoc.Corporate.Business.Solutions.Department.was.set.up,.charged.with.the.responsibility.to.implement.effective.and.innovative.service.propositions,.along.with.supporting.Relationship.Manager.teams.in.broadening.the.scope.of.product.offering.
A.key.role.across.all.foreseeable.time.frames.in.the.growth.roadmap.of.Corporate.Department.is.played.by.Trade.Finance,. where. Banca. Intesa. can. extend. the. significant. track-record. of. Intesa. Sanpaolo.. Paramount. attention.is.being.dedicated.to.structured.working.capital.advisory.and.financing;.origination,.advisory.and.execution.of.documentary.products;.and.delivery.of.structured.banking.products,. including.project.financing.and.structured.export.financing.
Corporate Block SME Business
SectorRetail Business Trade Finance
Development.prospects.in.2020
Development prospects in 2020
57
DEVELOPING THE SME BUSINESS SECTOR
In.2020,.SME.crediting.dynamics.will.be.predominantly.shaped.by.the.development.of.SME.state.support.programs.and.improved.terms.of.loan.and.depository.products.offered.to.customers.
Under.the.Subsidy.Program.implemented.by.the.Ministry.of.Economic.Development.of.the.Russian.Federation,.it.is.planned.to.increase.loans.to.SMEs.up.to.RUB.8.billion.
The.accreditation.of.Banca.Intesa.under.the.guarantee-based.mechanism.without.double.underwriting.with.SME.Corporation.as.well.as.the.optimization.of.transaction.review.procedures,.including.the.introduction.of.simplified.due.diligence.procedures.for.SME.clients,.will.set.a.positive.trend.in.SME.lending..
One.of.the.priorities.is.to.modernize.documentary.products.in.order.to.increase.fee.revenues..Expanded.product.range,. shorter. transaction. decision-making. time,. and. optimized. account. opening. procedures. will. attract. new.clients.in.2020.
In.2020,.it.is.planned.to.hold.strategic.sessions.with.SME.clients.in.the.Bank’s.major.regions.of.presence..These.events.are.planned.to.be.held.jointly.with.institutions.providing.state.support.for.small.and.medium.enterprises.(SME.Corporation,.regional.SME.support.funds,.OPORA.RUSSIA,.Business.RUSSIA,.Agency.for.Strategic.Initiatives.(ASI)).
RETAIL BUSINESS DEVELOPMENT
In.2020,.it.is.planned.to.strengthen.synergy.with.the.corporate.and.SME.clients.by.strengthening.cross-sales.and.acquiring.corporate.businesses.as.Private.banking.clients..
There.are.a.number.of.joint.projects.with.Intesa.Sanpaolo.Private.banking.scheduled.
The.Bank.also.plans.to.expand.its.geographical.presence.and.open.a.new.branch.for.Private.client.servicing.in.Yekaterinburg.
TRADE FINANCE DEVELOPMENT
In.2020,.the.Bank.plans.to.further.strengthen.and.develop.cooperation.with.export.credit.agencies.(ECAs).and.export-import.banks.from.different.countries,.international.banks,.other.financial.institutions.and.organizations,.including.with. the.aim.of.obtaining.credit. facilities.on. the. terms. favorable. for. the.Bank.and. raising. funds. for.implementation.of.various.projects.
The.plans.for.2020.also.include.development.of.documentary.business.and.trade.finance.products,.expansion.of.the.range.of.international.financing.products,.effecting.transactions.of.syndicated.pre-export.lending,.establishment.and. development. of. cooperation. with. state. organizations. aimed. at. the. Bank’s. participation. into. the. Russian.products’.export.support.programs.
58
Report on Compliance with the Principles and Recommendations of the Corporate Governance Code
60
This.Report.on.Compliance.with.the.Principles.and.Recommendations.of.the.Corporate.Governance.Code.was.examined.by.the.Board.of.Directors.of.Banca.Intesa.(hereinafter.referred.to.as.the.«Bank»).at.a.meeting.held.on.February.26,.2020,.Protocol.No.2/2020.dd..March.3,.2020.
The.Board.of.Directors.confirms.that.the.data.herein.is.a.complete.and.accurate.representation.of.the.company’s.compliance.with.the.principles.and.recommendations.of.the.Corporate.Governance.Code.2019.
Report.on.Compliance.with.the.Principles.and.Recommendations.of.the.Corporate.Governance.Code
Report on Compliance with the Principles and Recommendations of the Corporate Governance Code
61
No.Corporate Governance
Principles
Evaluation Criteria for Compliance with a Corporate
Governance Principle
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Reasons for Deviation from the Evaluation Criteria for Compliance with a Corporate Governance
Principle
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1.1 The.company. shall. ensure.equal.and. fair. attitude. towards.all. its. shareholders. in. the.exercise.of. their. rights. to.participate. in. the.company’s.management.
1.1.1 The. company. shall. provide. as.favourable. environment. as. possible.to. the. shareholders. to. ensure.their. participation. in. the. General.Meeting,.an.environment.to.develop.a.reasonable.position.regarding.the.General. Meeting. agenda. items,.coordination.of.its.measures,.and.it.shall.provide.opportunities. to.share.ideas. regarding. any. issues. under.consideration.
1..The. company’s. internal. documentgoverning. the. General. Meetingprocedures. approved. by. the. GeneralShareholders'. Meeting. shall. beavailable.to.public.
2..The.company.provides.accessible.waysof.communication.with.itself,.such.as.ahotline,.email,.or.a.web.forum.wherethe. shareholders. may. share. theiropinions.and.enquire.about.the.agendain.the.run-up.to.the.General.Meeting.The.company.took.the.above.measuresprior. to. each. General. Meeting. heldduring.the.reporting.period.
Compliance 1..The. Bank. does. not. have. aninternal. document. governing.the. General. Shareholders'.Meeting. procedures.. The. Bank.shall. convene. and. hold. the.General. Shareholders'. Meeting.in. compliance.with. the. relevant.legislation.and.its.Charter..Bank’s.Charter.is.placed.in.open.access..
2..The. Bank. provides. shareholderswith. an. easy. way. ofcommunication. with. the. Bankon.a.permanent.basis. via. e-mailensuring.feedback.with.the.Bankwhen. making. up. the. agenda. inthe. course. of. preparing. to. thegeneral.meeting.
1.1.2 The. procedure. for. convening. the.General. Meeting. and. providing.materials. for. the. General. Meeting.enables.the.shareholders.to.be.duly.prepared.for.their.participation.
1..A.notification.about.a.General.Meetingshall. be. published. on. the. websiteat. least. 30. days. prior. to. the. GeneralMeeting.date.
2..Such. notification. shall. include. theindication.of.the.place.for.the.meetingto.be.held,.and.the.documents.requiredfor.admittance.to.the.location.
3..The. shareholders. were. notified. ofthe. persons. advancing. agenda. itemsand. nominating. candidates. for. thecompany’s. Board. of. Directors. andRevision.Committee.
Compliance The. Bank. shall. convene. and. hold.the.General.Shareholders'.Meeting.in. compliance. with. the. relevant.legislation. and. its. Charter.. In.accordance. with. Changes. No.. 1.to.the.Bank.Charter,.a.notification.about. the. General. Shareholders'.Meeting. with. relevant. materials.attached.to. it.shall.be.sent.to.the.shareholders. within. a. reasonable.time. for. delivery,. but. in. any. case.no.less.than.21.days.
Table 1. Report on Compliance with the Principles and Recommendations of the Corporate Governance Code
Report on Compliance with the Principles and Recommendations of the Corporate Governance Code
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1.1.3 In.the.run-up.to.the.General.Meeting,.the.shareholders.had.full.and.timely.access.to.the. information.about.the.meeting.and.its.materials,.were.able.to.submit.enquiries.to.the.company’s.executive. bodies. and. members. of.the.Board.of.Directors,.as.well.as.to.communicate.with.each.other.
1..During. the. reporting. period,. the.shareholders. were. able. to. submit.enquiries. to. the. members. of. the.executive.bodies.and.Board.of.Directors.of.the.company.prior.to.and.during.the.Annual.General.Meeting..
2..The. Board. of. Directors’. position.(including. the. minority. opinions.registered. in. the. Minutes). regarding.each. agenda. item. of. the. General.Meetings. held. during. the. reporting.period. was. included. in. the. materials.for.the.General.Shareholders'.Meeting..
3..The. company. provided. its. eligible.shareholders.with.access.to.the. list.of.shareholders. entitled. to. participate. in.the. General. Meeting. from. the. date.it.was. received.by. the.company. in.all.cases. of. holding. General. Meetings. in.the.reporting.period.
Compliance
1.1.4 Shareholder’s. right. to. call. for.a. General. Meeting,. nominate.candidates. to. the.executive.bodies,.and. propose. General. Meeting.agenda.items.was.not.unreasonably.encumbered.
1..During. the. reporting. period,. the.shareholders. were. able. to. propose.agenda. items. for. the.Annual.General.Meeting. within. at. least. 60. days.following. the. end. of. the. relevant.calendar.year..
2..During. the. reporting. period,. the.company. did. not. reject. any. agenda.items. or. nominees. to. the. executive.bodies. due. to. misprints. or. other.insignificant. shortcomings. in. a.shareholder’s.proposal.
Compliance In.accordance.with.Changes.No..1.to.the.Bank.Charter,.agenda.items.for.the.General.Shareholders'.Meeting.are. proposed. in. compliance. with.Clause.53.1.of.the.Federal.Law.On.Joint-Stock.Companies.and.drafted.in. compliance. with. Clauses. 53.3.and. 53.4. of. the. Federal. Law. On.Joint-Stock.Companies.within. two.months. following. the. end. of. the.reporting.year.
1.1.5 Each.shareholder.had.an.unhindered.opportunity. to. exercises. his. voting.right.as.he.found.convenient.
The. company’s. internal. document.(internal.policy).enables.each.participant.of. the. General. Meeting. to. request. a.copy.of.the.bulletin,.filled.in.by.him.and.verified.by.the.accounts.board.before.the.end.of.the.relevant.General.Meeting.
Partial compliance
Each. participant. of. the. General.Meeting. may,. before. the. end. of.the. relevant. General. Meeting,.request. a. copy. of. the. bulletin,.filled.in.by.him.and.verified.by.the.accounts. board,. however,. such.right.is.not.registered.in.the.Bank’s.documents..
Continuation of Table 1
Report on Compliance with the Principles and Recommendations of the Corporate Governance Code
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1.1.6 The.company's.procedure.governing.the. General. Meetings. provides. for.equal. opportunities. for. all. General.Meeting. attendees. to. share. their.opinions.and.pose.any.questions.of.their.concern.
1..The. General. Shareholders'. Meetingsheld.during.the.reporting.period.in.theform.of.a.meeting.(joint.presence.of.theshareholders). provided. for. sufficienttime.for.reports.and.discussions.of.theagenda.items.
2..The. nominees. to. the. executive. andcontrol. bodies. of. the. company. wereavailable. to. answer. the. shareholders’questions. at. the. meeting. where. theirnomination.was.put.to.vote.
3..The. Board. of. Directors,. in. makingdecisions. regarding. the. preparationand. holding. of. General. Shareholders'Meetings,. considered. the. use. oftelecommunication. means. to. providethe.shareholders.with.a.remote.accessto.the.General.Shareholders'.Meetingsduring.the.reporting.period.
Compliance Some. nominees. to. the. executive.bodies. were. available. to. answer.the.shareholders’.questions.at.the.meeting. where. their. nomination.was.put.to.vote.through.electronic.communication.means.
1.2 The.shareholders.were.provided.with.equal.and.fair.opportunity.to.take.part.in.the.company’s.profit.through.the.receipt.of.dividends.
1.2.1 The. company. developed. and.implemented.a.clear.and.transparent.procedure. governing. the. amount.and.payment.of.dividends.
1..A. dividend. policy. was. developed,approved. by. the. Board. of. Directors,and.disclosed.
2..Where. the. company's. dividend. policyis.based.on.the.company’s.statementsto.determine.the.amount.of.dividends,then. the. relevant. provisions. of. thedividend. policy. include. the. accountconsolidated.financial.statements.
Compliance Pursuant.to.Article.6.of.the.Bank’s.Charter,.the.General.Shareholders'.Meeting. determines. the. amount,.form. and. procedure. for. payment.of. dividends. as. proposed. by. the.Board.of.Directors..
Additionally,.when.recommending.dividend. payments,. the. Board. of.Directors. of. the. Bank. considers.all.the.circumstances.affecting.the.dividend.payment.decision.
1.2.2 The.company.does.not.declare.any.dividends. where. such. dividends,.though.formally.in.compliance.with.legal. restrictions,. are. not. feasible.and.may.create.a.misleading.image.of.company's.business.
The.company's.dividend.policy.has.clear.indications. of. financial. and. economic.situation.when.the.company.shall.not.pay.any.dividends.
Compliance The.Bank.does.not.have.a.dividend.policy. as. a. separate. document,.however. the. Bank’s. decision.(declaration). to. pay. dividends. is.based.on.the.Bank’s.performance.indicators.and.dividend.restrictions.set. by. the. relevant. legislation. of.the.Russian.Federation.
1.2.3 The. company. does. not. deteriorate.the. existing. shareholders’. rights. to.dividends.
During.the.reporting.period,.the.company.did. not. take. any. actions. that. would.deteriorate. existing. shareholders’. rights.to.dividends.
Compliance
1.2.4 The. company. seeks. to. prevent. an.opportunity. for. the. shareholders.to. receive. profit. (income). at. the.company's. expense. other. than.dividends.and.liquidation.value.
For. the. purposes. of. preventing. an.opportunity. for. the. shareholders. to.receive.profit. (income).at.the.company's.expense. other. than. dividends. and.liquidation. value,. the. company's.internal.documents.provide.for.a.control.mechanism.that.ensures.timely.detection.and.approval.procedure. for. transactions.with.persons.that.are.affiliated.to.(related.to). the. existing. shareholders. (persons.entitled.to.manage.the.votes.embedded.in.the.voting.shares),.where.the.law.does.not.formally. recognize.such.transactions.as.related.party.transactions.
Compliance The. internal. documents. do. not.provide. for. such. principle,. but.the. principle. is. implemented. in.practice.
Continuation of Table 1
Report on Compliance with the Principles and Recommendations of the Corporate Governance Code
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1.3 The.Corporate.Governance.system.and.practice.provide.for.equitable.treatment.of.all.shareholders.holding.shares.of.one.category.(type),.including.the.minority.(minor).shareholders.and.foreign.shareholders,.as.well.as.equal.attitude.towards.them.on.the.part.of.the.company.
1.3.1 The. company. created. an.environment.of.equitable.treatment.of.each.shareholder.by.the.executive.bodies. and. supervisors. of. the.company,. including. conditions. that.eliminate. any. abuse. by. the. major.shareholders. with. regard. to. minor.shareholders.
During. the. reporting. period,. the.procedures. governing. potential. conflicts.of. interests. of. the. existing. shareholders.proved. efficient,. and. the. Board. of.Directors. paid. due. attention. to. any.conflicts. between. the. shareholders. (if.any).
Compliance
1.3.2 The. company. does. not. take. any.actions. that. result. or. may. result. in.an. artificial. redistribution. of. the.corporate.control.
There. are. no. quasi-treasury. shares. and.they. did. not. vote. during. the. reporting.period.
Compliance
1.4 The.shareholders.have.reliable.and.efficient.ways.of.accounting.the.shareholding.rights.and.opportunities.for.free.and.unencumbered.disposal.of.their.shares.
1.4.1 The. shareholders. have. reliable.and. efficient. ways. of. accounting.the. shareholding. rights. and.opportunities. for. free. and.unencumbered. disposal. of. their.shares.
The.quality.and.reliability.of.the.manner.that. the. company’s. registrar. keeps. the.shareholder. registry. in. comply. with.the. demands. of. the. company. and. its.shareholders.
Compliance
2.1 The.Board.of.Directors.carries.out.strategic.management.of.the.company,.defines.basic.principles.and.approaches.to.the.company's.risk.management.and.internal.control.systems,.controls.the.company's.executive.bodies’.activities,.and.performs.other.key.functions.
2.1.1 The.Board.of.Directors. is. in. charge.of. appointing. and. dismissal. of.executives,. including. due. to.appointees’. failure.to.perform.their.functions.. The. Board. of. Directors.also. controls. the. executive. bodies’.compliance. with. the. approved.development. strategy. and. the.company's.main.businesses.
1..The.Charter.provides.for.the.authority.of. the. Board. of. Directors. to. appoint.and.dismiss.persons,.and.to.determine.agreement. terms. regarding. the.executive.body.members..
2..The.Board.of.Directors.considered.the.report(s).of. the.chief.executive.officer.and.members.of.the.collective.executive.body.regarding.the.implementation.of.the.company’s.strategy.
Compliance
2.1.2 The. Board. of. Directors. sets. main.long-term. guidelines. for. the.company's. activities,. assesses. and.approves.key.performance.indicators.and. main. business. goals. of. the.company,.assesses.and.approves.the.strategy. and. business. plans. of. the.company's.main.businesses.
During. the. reporting. period,. the. Board.of. Directors. considered. the. issues. of.strategy. implementation. and. updating,.approval. of. company's. financial. and.economic.plan. (budget),.and.considered.the.implementation.criteria.and.indicators.(including. interim). of. the. company's.strategy.and.business.plans.
Compliance
2.1.3 The. Board. of. Directors. determines.the.principles.and.approaches.to.the.organisation. of. risk. management.and. internal. control. system. of. the.company.
1..The.Board.of.Directors.has.determined.the. principles. and. approaches. of.organisation. of. the. risk. management.and. internal. control. system. of. the.company..
2..The. Board. of. Directors. assessed. the.company's. risk. management. and.internal. control. system. during. the.reporting.period.
Compliance
Continuation of Table 1
Report on Compliance with the Principles and Recommendations of the Corporate Governance Code
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2.1.4 The. Board. of. Directors. determines.the. company's. remuneration. and/or. compensation. policy. for. the.members.of.the.Board.of.Directors,.executive. bodies. and. other. key.executives.of.the.company.
1..The. company. has. developed. andimplemented. the. remunerationand. compensation. policy. (policies)approved.by.the.Board.of.Directors.forthe.members.of.the.Board.of.Directors,executive.bodies.of. the. company.andother.key.executives.of.the.company.
2..During.the.reporting.period,.the.Boardof. Directors. considered. issues. relatedto.the.policy.(policies).
Compliance The. Board. of. Directors'.remuneration. and. compensation.regulation. is. approved. by. the.Shareholders'. Meeting. of. the.Bank..
The. Board. of. Directors. approves.remuneration. documents. for.the. members. of. the. Bank’s.Management.Board,.risk.accepting.employees. and. internal. control.employees.
2.1.5 The. Board. of. Directors. plays. a. key.role. in. preventing,. eliminating. and.managing.internal.conflicts.between.the.company’s.bodies,.shareholders.and.employees.
1..The. Board. of. Directors. plays. a. keyrole. in. preventing,. eliminating. andmanaging.internal.conflicts.
2..The. company. created. a. system. toidentify.transactions.related.to.conflictsof.interests.and.a.system.of.actions.toresolve.such.conflicts.
Compliance
2.1.6 The. Board. of. Directors. plays. a. key.role. in. ensuring. the. company's.transparency,. timely. and. full.disclosure. of. its. information,.shareholders’.unencumbered.access.to.the.company’s.documents.
1..The. Board. of. Directors. approved. theinformation.policy.
2..The.company.has.persons.in.charge.ofimplementing.the.information.policy.
Compliance
2.1.7 The.Board.of.Directors.controls. the.company’s. Corporate. Governance.practices. and. plays. a. key. role. in.essential. corporate. events. of. the.company.
During. the. reporting. period,. the. Board.of. Directors. considered. the. company's.Corporate.Governance.practices.
Compliance
2.2 The.Board.of.Directors.reports.to.the.company’s.shareholders.
2.2.1 The.information.about.the.Board.of.Directors'.activities.shall.be.disclosed.to.the.shareholders.
1..The. company's. annual. statement. forthe. reporting. period. shall. includeindividual. Directors’. attendance. ofthe.Board.of.Directors.and.committeemeetings.
2..The. annual. statement. has. theinformation.about.main.results.of. theBoard.of.Directors’.activities.during.thereporting.period.
Compliance The. Bank’s. annual. statement. for.the. reporting. period. does. not.include.detailed.information.about.individual. Directors’. attendance.of. the. Board. of. Directors. and.committee. meetings,. however,.the.shareholders.may.have.access.to.this.information..
2.2.2 The. Chairman. of. the. Board.of. Directors. is. available. for.communication.with.the.company’s.shareholders.
The.company.has.a.transparent.procedure.enabling.the.shareholders.to.submit.their.enquiries. and. related. opinions. to. the.Chairman.of.the.Board.of.Directors.
Compliance The.shareholders.may.submit.their.enquiries. and. related. opinions.to. the. Chairman. of. the. Board.of. Directors,. including. through.representatives. in. the. Board. of.Directors,. however,. this. principle.aren’t.fixed.in.a.special.document.
Continuation of Table 1
Report on Compliance with the Principles and Recommendations of the Corporate Governance Code
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2.3 The.Board.of.Directors. is.an.effective.and.professional.management.body.of. the.company,.which. is.able. to.make. impartial.and.independent.estimations.and.decisions.in.the.interests.of.the.company.and.its.shareholders.
2.3.1 Only. persons. with. an. impeccable.business. and. personal. reputation,.knowledge,. skills. and. experience.necessary. for.making.any.decisions.within.the.competence.of.the.Board.of.Directors.and.required.to.ensure.its. efficient. functioning,. may. be.elected.as.members.of.the.Board.of.Directors.
1..The.company's.procedure.for.assessing.the.efficiency.of.the.Board.of.Directors’.activities.includes,.among.other.things,.assessing.professional.qualifications.of.the.members.of.the.Board.of.Directors..
2..During. the. reporting. period,. the.Board. of. Directors. (or. its. Nomination.Committee). assessed. the. nominees.to. the. Board. of. Directors. in. terms. of.their.experience,.knowledge,.business.reputation,. absence. of. conflicts. of.interests,.etc.
Compliance The. Board. of. Directors’.performance. is. assessed. at. the.Annual. General. Shareholders'.Meeting. without. recording. the.results.as.a.report..The.Shareholders.consider. all. circumstances. that.affect. decisions. and. comply. with.the. interests. of. the. company.and. the. Shareholders,. including.the. assessment. of. professional.qualifications. of. the. members. of.the.Board.of.Directors..
During. the. reporting. period,.the. Board. of. Directors. did. not.assess. the.nominees.to.the.Board.of. Directors. in. terms. of. their.experience,. knowledge,. business.reputations,.absence.of.conflicts.of.interests,.etc.,.as.such.assessment.is. made. by. the. shareholders.themselves.
2.3.2 Members.of. the.Board.of.Directors.are. elected. under. a. transparent.procedure. that. provides. the.shareholders. with. sufficient.information. about. nominees’.personal.and.professional.qualities.
In.all.cases.of.the.General.Shareholders'.Meeting. during. the. reporting. period,.where. the.agenda. included. the.election.of. the. Board. of. Directors,. the. company.provided. the. shareholders. with.biographies. of. all. the. nominees. to. the.Board. of. Directors,. their. assessments.provided. by. the. Board. of. Directors. (or.its. Nomination. Committee),. and. the.information. regarding. the. nominees’.compliance. with. independence. criteria.subject.to.recommendations.101-107.of.the.Code,.and.nominees’.written.consent.to. their. nomination. to. the. Board. of.Directors.
Compliance The. Board. of. Directors. /.Nomination. Committee. did. not.assess. the.nominees.to.the.Board.of. Directors.. The. assessment.was. carried. out. by. the. Bank’s.shareholders.
2.3.3 The. membership. of. the. Board. of.Directors. is. balanced,. including. in.terms.of.its.members’.qualifications,.experience,. knowledge,. and.business. qualities,. the. members.of. the. Board. of. Directors. enjoy.shareholders’.trust.
As.part.of.the.assessment.of.the.Board.of.Directors’. activities. during. the. reporting.period,.the.Board.of.Directors.analysed.its.demands. for. professional. qualifications,.experience.and.business.skills.
Compliance The. efficiency. of. the. Board. of.Directors’. activities. is. assessed. by.the.Bank’s.shareholders..
Based. on. the. results. of. 2019,. a.self-assessment.of.the.integrity.and.feasibility. of. the. Board. members.was. conducted. in. accordance.with.the.recommendations.of.the.Bank.of.Russia.for.self-assessment.of. the. performance. of. the. Board.of. Directors. in. public. joint-stock. companies. and. financial.organizations.
Continuation of Table 1
Report on Compliance with the Principles and Recommendations of the Corporate Governance Code
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2.3.4 A. number. of. the. members. of. the.Board.of.Directors. of. the. company.provides. for.organizing. its.activities.in. as. efficient. manner. as. possible,.including. creation. of. the. Board. of.Directors’. committees,. and. enables.significant. minority. shareholders. of.the.company.to.elect. the.members.of.the.Board.of.Directors.for.whom.they.vote.
As. part. of. the. assessment. of. the. Board.of. Directors. made. during. the. reporting.period,. the.Board.of.Directors.discussed.whether.the.number.of.the.members.of.the.Board.of.Directors.complies.with.the.company’s.and.shareholders’.interests.
Compliance The. number. of. members. of. the.Board. of. Directors. is. determined.by. the. Bank’s. shareholders.. No.self-assessment. of. the. Board. of.Directors. was. performed. during.the.reporting.period.
2.4 The.Board.of.Directors.has.a.sufficient.number.of.independent.directors.
2.4.1 An. independent. director. is. a.director. with. professional. skills,.experience. and.discretion. sufficient.to.create.own.opinion,.able.to.make.reasonable.and.bona.fide.judgments,.independent. of. the. influence. of.the. company’s. executive. bodies,.separate. shareholder. groups. or.interested.parties..Given.the.above,.note.that. in.ordinary.circumstances.a.nominee. (elected.member.of. the.Board. of. Directors). may. not. be.deemed. independent. where. it. is.related.to.the.company,.its.essential.shareholder,. essential. counterparty.or. the. company's. competitor,. or.related.to.the.government.
During. the. reporting. period,. all.independent. members. of. the. Board.of. Directors. were. in. compliance. with.the. independence. criteria. listed. in.recommendations.102-107.of.the.Code,.or. were. deemed. independent. by. the.Board.of.Directors.
Compliance
2.4.2 Nominees.to.the.Board.of.Directors.are.assessed.for.compliance.with.the.independence. criteria,. independent.members.of. the.Board.of.Directors.are. assessed. for. compliance. with.the. independence. criteria. on.regular. basis.. The. content. of. such.assessment. shall. prevail. over. its.form.
1..During. the. reporting. period,. the.Board. of. Directors. (or. its. Nomination.Committee). drafted. an. opinion.regarding. independence. of. each.nominee.to.the.Board.of.Directors.and.submitted.it.to.the.shareholders..
2..During.the.reporting.period.the.Board.of.Directors.(or.its.Nomination.Committee).checked. the. existing. members. of. the.Board. of. Directors. for. independence.at. least. once,. which. members. are.indicated. as. independent. directors. in.the.company's.annual.statement..
3..The. company. has. procedures.provide. for. a. member. of. the. Board.of. Directors. to. take. action. where. it.ceases.to.be.independent,.including.its.responsibility.to.timely.notify.the.Board.of.Directors.thereof.
Not observed
This. standard. is. not. stipulated. by.the. Bank’s. Charter. and. internal.regulations.
2.4.3 Independent.directors.constitute.not.less. than. one. third. of. the. elected.members.of.the.Board.of.Directors.
Independent.directors.constitute.not.less.than. one. third. of. the. members. of. the.Board.of.Directors.
Compliance
2.4.4 Independent. directors. play. a. key.role. in. preventing. internal. conflicts.in. the. company. and. carrying. out.the. company's. essential. corporate.actions.
Independent.directors.(with.no.conflict.of.interests).make.a.preliminary.assessment.of. essential. corporate. actions. related. to.potential. conflicts. of. interests,. and. the.assessment. results. are. submitted. to. the.Board.of.Directors.
Partial compliance
Essential. corporate. actions. are.notified. to. all. members. of. the.Board. of. Directors. of. the. Bank.at. the. same. time,. the. norms. of.the. Bank’s. internal. documents.governing. conflict. of. interest.prevention.are.applied.
Continuation of Table 1
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2.5 The.Chairman.of.the.Board.of.Directors.contributes.to.the.most.effective.performance.of.the.Board.of.Directors’.functions.
2.5.1 The. Chairman. of. the. Board. of.Directors. is.an.elected. independent.director,. or. a. senior. independent.director. is. determined. among. the.elected. independent. directors,.who. coordinates. the. work. of.independent.directors.and. interacts.with.the.Chairman.of. the.Board.of.Directors.
1..The.Chairman.of.the.Board.of.Directors.is.an.independent.director,.or.a.senior.independent. director. is. determined.among.the.independent.directors..
2..The. role,. rights. and. responsibilities.of. the. Chairman. of. the. Board. of.Directors.(or,.where.applicable,.of.the.senior. independent. director). are. duly.determined. in. the. company’s. internal.documents.
Partial compliance
The. Chairman. of. the. Board. of.Directors. is. not. independent,. the.senior. independent. director. was.not. elected. in. 2019. since. the.expediency. of. this. action. is. not.obvious.to.the.Bank.—.the.opinion.of.each.of.the.directors.is.important.to.the.Board.of.Directors..If.there.is.a. reasonable. need,. this. approach.may.be.changed.
2.5.2 The. Chairman. of. the. Board. of.Directors. ensures. a. practical.environment. for. the.meetings,. free.discussions. of. the. issues. on. the.agenda,. controls. compliance. with.the.decisions.made.by.the.Board.of.Directors.
The.Chairman.of.the.Board.of.Directors’.performance. is. assessed. as. part. of.the. Board. of. Directors’. performance.assessment. procedure. for. the. reporting.period.
Compliance
2.5.3 The. Chairman. of. the. Board. of.Directors.takes.reasonable.measures.to.ensure. that. the.members.of. the.Board. of. Directors. are. promptly.provided. with. the. information.enabling.them.to.make.decisions.on.the.agenda.items.
The.Chairman.of.the.Board.of.Directors’.responsibility.to.ensure.that.the.members.of. the. Board. of. Directors. are. promptly.provided.with.the.materials.regarding.the.agenda.items.of.the.meeting.of.the.Board.of.Directors.is.recorded.in.the.company’s.internal.documents.
Compliance
2.6 The.members.of.the.Board.of.Directors.act.in.good.faith.and.reasonably.in.the.interests.of.the.company.and.its.shareholders.based.on.sufficient.information.with.due.care.and.diligence.
2.6.1 The. members. of. the. Board. of.Directors. make. decisions. based. on.all.available.information,.in.absence.of.a.conflict.of.interests,.taking.into.account.equitable.treatment.of.each.shareholder.of.the.company,.as.part.of.an.ordinary.business.risk.
1..The. company's. internal. documents.provide. that. a. member. of. the. Board.of. Directors. shall. notify. the. Board. of.Directors. should. it. have. a. conflict. of.interests.regarding.any.agenda.item.of.a.Board.of.Directors.or. its. committee.meetings. before. discussing. a. relevant.agenda.item..
2..The. company's. internal. documents.provide.that.a.member.of.the.Board.of.Directors. shall. not. vote. on. any. issues.where.it.has.a.conflict.of.interests..
3..The. company. has. a. procedure. that.enables. the. Board. of. Directors. to.receive. professional. advice. regarding.the.issues.within.its.competence.at.the.cost.of.the.company.
Compliance
2.6.2 The.rights.and.responsibilities.of.the.Board.of.Directors.are.clearly.defined.and. recorded. in. the. company's.internal.documents.
The. company. has. an. approved. and.published. internal.document.that.clearly.defines. the. rights. and. responsibilities. of.the.Board.of.Directors.
Compliance
Continuation of Table 1
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2.6.3 The. members. of. the. Board. of.Directors. have. sufficient. time. to.perform.their.responsibilities.
1..Individual. attendance. of. the. Boardand.committee.meetings,.and.the.timespent. in. the. run-up. to. the. meetingswas.taken.into.account.as.part.of.theprocedure. for. assessing. the. Board. ofDirectors.during.the.reporting.period.
2..Pursuant. to. the. company’s. internaldocuments,.the.members.of.the.Boardof. Directors. shall. notify. the. Board. ofDirectors.on.their.intention.to.becomea. member. of. the. executive. bodies. ofother.entities.(other.than.the.company'scontrolled. and. dependent. entities),and.on.such.actual.appointment.
Compliance
2.6.4 All. members. of. the. Board. of.Directors. have. equal. access. to. the.documents. and. information. of. the.company..New.elected.members.of.the.Board.of.Directors.are.provided.with. sufficient. information. on. the.company.and.the.Board.of.Directors’.activities.as.soon.as.possible.
1..Pursuant. to. the. company’s. internaldocuments,.the.members.of.the.Boardof.Directors.may.access.the.documentsand. make. enquiries. regarding. thecompany. and. its. controlled. entities,and. the. company's. executive. bodiesshall.provide.relevant.information.anddocuments.
2..The. company. has. a. formalizedintroduction. programme. for. newmembers.of.the.Board.of.Directors.
Partial compliance
Newly. elected. members. of. the.Board.of.Directors. are. introduced.to. the. Bank’s. activities;. in.particular,. they. are. provided. with.induction. materials,. including. the.Bank’s. constituent. and. regulatory.documents.governing.the.activities.of.management.bodies.
2.7 Meetings.of.the.Board.of.Directors,.preparation.for.them.and.participation.of.the.members.of.the.Board.of.Directors.in.such.meetings.ensures.effective.activity.of.the.Board.of.Directors.
2.7.1 Board.of.Directors.meetings.are.held.as.necessary.given.the.scope.of.the.company's. activities. and. current.tasks.for.the.period.
The. Board. of. Directors. held. at. least. six.meetings.during.the.reporting.year.
Compliance
2.7.2 The. company’s. internal. documents.govern. the. preparation. of. the.Board.of.Directors.meetings.so.as.to.enable.the.members.of.the.Board.of.Directors.to.be.duly.prepared.for.the.meeting.
The. company. has. an. approved. internal.document. governing. the. preparation.and. holding. of. the. Board. of. Directors.meetings,.including.a.provision.that.such.meetings. shall. be. held. with. at. least. a.5-day.prior.notification.
Compliance Pursuant. to. the. Bank’s. internal.documents,.the.Board.of.Directors.meetings. are. held. at. least. with. a.30-day. prior. notification. to. themembers.of.the.Board.of.Directorsof. the. Bank,. the. distribution. ofmaterials.for.study.shall.take.placeat.least.8.days.prior.to.conductionof.the.meeting.
2.7.3 The. form.of. the.Board.of.Directors.meetings. depends. on. the.importance. of. the. agenda. items..The. most. important. issues. are.resolved. at. the. Board. of. Directors.meetings.held.in.presence.
The. company's. Charter. or. internal.document. provides. that. the. most.important. issues. (as. listed. in.Recommendation.168.of.the.Code).shall.be. resolved. at. in. presence. meetings. of.the.Board.
Compliance The.Charter.or.internal.documents.do.not.provide. for. such.principle,.but.the.principle.is.implemented.in.practice.
2.7.4 Decisions. on. the. most. important.issues. of. the. company’s. business.are.made.at. the.Board.of.Directors.meetings. by. a. qualified. majority.or. the. majority. vote. of. all. elected.members.of.the.Board.of.Directors.
The. company's. Charter. provides. that.decisions. on. the. most. important. issues.listed. in. Recommendation. 170. of. the.Code. shall. be. made. at. the. Board. of.Directors.meetings.by.a.qualified.majority.with.a.no. less. than.three.fourths.of. the.votes,.or.the.majority.vote.of.all.elected.members.of.the.Board.of.Directors.
Compliance
Continuation of Table 1
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1 2 3 4 5
2.8 The.Board.of.Directors.shall.establish.committees.for.preliminary.examination.of.the.most.important.issues.of.the.company’s.activities.
2.8.1 An.Audit.Committee.of.independent.directors.was.set.up.for.the.purposes.of. preliminary. examination. of. the.issues. related. to. the. control. over.financial.and.operational.company’s.activities.
1..The.Board.of.Directors.set.up.an.Audit.Committee.exclusively.of.independent.directors..
2..The.company's.internal.documents.set.Audit.Committee’s.tasks,.including.the.tasks.listed.in.Recommendation.172.of.the.Code..
3..At. least. one. member. of. the. Audit.Committee. being. an. independent.director. is. experienced. and.knowledgeable.in.terms.of.preparation,.analysis,. assessment. and. audit. of.accounting.(financial).statements..
4..Audit.Committee.meetings.were.held.at. least. on. quarterly. basis. during. the.reporting.period.
Partial compliance
In.accordance.with.the.Regulation.on. the. Bank’s. Audit. Committee,.the. Committee. is. comprised. of.specialists. from.the.Bank’s.parent.company. who. have. the. required.qualification. for. engaging. into.accounting,. finance. and/or.management.activity.
2.8.2 For. the. purposes. of. preliminary.consideration. of. the. issues. related.to. the. creation. of. an. efficient. and.transparent. remuneration. practice,.a.Remuneration.Committee.was.set.up.of.independent.directors,.headed.by. an. independent. director. other.than.the.Chairman.of.the.Board.of.Directors.
1..The. Board. of. Directors. created. a.Remuneration. Committee. set. up.exclusively.independent.directors..
2..The. Chairman. of. the. Remuneration.Committee.is.an.independent.director.other.than.the.Chairman.of.the.Board.of.Directors..
3..The. company's. internal. documents.set. Remuneration. Committee’s.tasks,. including. the. tasks. listed. in.Recommendation.180.of.the.Code.
Compliance In. 2019,. the. Remuneration.Committee. was. established. with.its. activities. regulated. by. the.Bank’s. internal. document.. The.Remuneration. Committee. shall.perform. preliminary. consideration.of. the. remuneration. of. the.Company’s. executive. bodies. and.other. key. executives. of. the. Bank.and. submit. decision-making.recommendations.to.the.Board.of.Directors.
2.8.3 For. the. purposes. of. preliminary.examination. of. the. issues.related. to. personnel. planning.(succession. planning),. professional.membership. and. efficiency. of. the.Board. of. Directors,. a. Nomination.(Appointment,. Staff). Committee.was. created. with. independent.directors. being. a. majority. of. the.committee.
1..The. Board. of. Directors. created. a.Nomination. Committee. (its. tasks.listed. in.Recommendation.186.of. the.Code.are.implemented.within.another.committee). whose. majority. are.independent.directors..
2..The. company's. internal. documents.set.Nomination.Committee’s. tasks. (or.the.tasks.of.a.relevant.committee.with.joint. functions),. including. the. tasks.listed. in.Recommendation.186.of. the.Code.
Partial compliance
The. issues. of. professional.membership. and. efficiency. of.the. Board. of. Directors. of. the.Bank. are. determined. by. the.Bank’s. shareholder,.a.Nomination.Committee.was.not.created.
2.8.4 Given. the. scope. of. business. and.risk. level,. the. Board. of. Directors.of. the. company. ensured. that. the.membership.of. its. committees. is. in.full.compliance.with.the.company's.targets.. Additional. committees.were.either.set.up.or.were.deemed.unnecessary. (Strategy. Committee,.Corporate. Governance. Committee,.Ethics.Committee,.Risk.Management.Committee,. Budgeting. Committee,.HSE.Committee.etc.).
During. the. reporting. period,. the.Board. of. Directors. considered. whether.the. membership. of. its. committees.corresponds. to. the. tasks. of. the. Board.of.Directors.and.the.company's.business.goals..Additional.committees.were.set.up.or.deemed.unnecessary.
Compliance As. necessary,. the. Board. of.Directors. considers. and. makes.decisions.regarding.compliance.of.its.committee.memberships.to.the.tasks.of.the.Board.of.Directors.and.Bank’s.business.goals.
Continuation of Table 1
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2.8.5 Committee.members.are.appointed.with. a. view. to. ensure. broad.discussion. of. pre-considered. issues.and. take. into. account. various.opinions.
1..Committees.of. the.Board.of.Directorsare.headed.by.independent.directors.
2..The. company's. internal. document(s)provide.that. the.persons.who.are.notmembers. of. the. Audit. Committee,Nomination. Committee. andRemuneration.Committee.may.attendcommittee. meetings. only. on. relevantcommittee.Chairman’s.invitation.
Partial compliance
The. Board. of. Directors. set. up.only. some. of. the. committees.recommended.by.the.Code..
However,. the. Board. of. Directors.of.the.Bank.includes.persons.with.relevant.accounting,.financial.and/or.managing.qualifications,.which.ensures.broad.discussion.of.issues.under. consideration.given. various.opinions.
2.8.6 Committee. Chairmen. inform. the.Board.of.Directors.and.its.Chairman.on. their. committees. activities. on.regular.basis.
During. the. reporting. period,. the.Committee. Chairmen. reported. on. their.committees. activities. to. the. Board. of.Directors.on.regular.basis.
Compliance
2.9 The.Board.of.Directors.provides.for.assessment.of.the.quality.of.work.of.the.Board.of.Directors,.its.committees.and.members.of.the.Board.of.Directors.
2.9.1 Assessment. of. the. quality. of. the.Board. of. Directors’. activities. is.intended. to. define. the. efficiency.of. the. activities. of. the. Board. of.Directors,. committees,. members. of.the. Board. of. Directors,. compliance.of. their. activity. to. the. company’s.development. needs,. activate.Board. of. Directors’. activity. and.detect. the. areas. of. their. potential.improvement.
1..Self-assessment.or.external.assessmentof.the.Board.of.Directors.made.duringthe. reporting. period. included. theassessment. of. the. activities. of. theBoard.of.Directors,.individual.membersof. the. Board. of. Directors,. and. theBoard.of.Directors.as.a.whole.
2..The. self-assessment. or. externalassessment. results. of. the. Board. ofDirectors.made.during.reporting.periodwere.considered.at.the.meeting.of.theBoard.of.Directors.in.presence.
Compliance
2.9.2 The. activities. of. the. Board. of.Directors,. committees,. and.members.of. the.Board.of.Directors.are.assessed.on.regular.basis.no.less.than. once. a. year.. An. independent.assessment. of. the. quality. of. the.Board. of. Directors. activities. involve.an. external. entity. (advisor). no. less.than.once.every.three.years.
The. independent. assessment. of. the.quality.of.the.Board.of.Directors.activities.involved. an. external. entity. (advisor). at.least.once.during.the.last.three.reporting.periods.
Partial compliance
The.quality.of.activities.is.assessed.by. the. Bank’s. shareholders.without. involving. an. external.entity.(advisor).
3.1 The.company's.Corporate.Secretary.is.in.charge.of.efficient.current.interaction.with.the.shareholders,.coordination.of.the.company's.shareholders.interest.and.right.protection.activities,.contribution.to.Board.of.Directors’.efficient.activity.
3.1.1 The. Corporate. Secretary. has.sufficient.knowledge.and.experience.to.perform.its.responsibilities,.has.an.impeccable. reputation. and. enjoys.shareholders’.trust.
1..The. company. has. an. approvedand. disclosed. internal. document. –Corporate.Secretary.Regulation.
2..The. company's. web-site. and. annualstatements. provide. CorporateSecretary’s.biography.in.as.much.detailas.the.biographies.of.the.members.ofthe.Board.of.Directors,.and.company'sexecutives.
Partial compliance
There. is. no. title. of. Corporate.Secretary. in. the. Bank.. Functions.of. a. corporate. secretary. are.performed. by. the. employees. of.Legal. Department.. Employees.appointed.as.secretaries.for.Board.of. Directors,. Management. Board.and.committees.of.the.Bank.have.necessary. skills,. knowledge. and.qualification..
Continuation of Table 1
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3.1.2 The. Corporate. Secretary. is.sufficiently. independent. of. the.company’s.executive.bodies.and.has.necessary. power. and. resources. to.perform.its.tasks.
The. Board. of. Directors. approves. the.appointment,. discharge. from. office. and.additional.remuneration.of.the.Corporate.Secretary.
Partial compliance
The. Bank’s. unit. in. charge. of. the.Corporate. Secretary’s. functions.was.conferred.the.functions.subject.to. the. Corporate. Governance.Code. recommendations. and. has.sufficient. resources. to. perform.its. functions.. No. additional.remuneration.is.paid.
4.1 The. remuneration. amount.paid.by. the. company. is. sufficient. to. attract,.motivate. and. retain. the.persons.with. competences. and.qualifications.required.by.the.company..Remuneration.to.the.members.of.the.Board.of.Directors,.executive.bodies.and.other.key.executives.of.the.company.is.paid.in.accordance.with.the.company’s.remuneration.policy.
4.1.1 The.remuneration.amount.provided.by.the.company.to.the.members.of.the. Board. of. Directors,. executives.and. other. key. executives. creates.sufficient. motivation. to. ensure.their. efficiency,. and. attract. and.retain. competent. and. qualified.professionals. to. the. company.. At.the.same.time,.the.company.avoids.excessive. remuneration. amounts.and.unreasonable.gap.between.the.remunerations.of.the.above.persons.and.company's.employees.
The. company. has. an. internal.document(s). –. a. remuneration. policy.(policies).for.the.members.of.the.Board.of.Directors,.executive.bodies.and.other.key.executives,.with.clear.approaches.to.such.remuneration.
Compliance
4.1.2 The.company's.remuneration.policy.was.developed.by.the.Remuneration.Committee. and. approved. by.the. Board. of. Directors. of. the.company.. The. Board. of. Directors.supported. by. the. Remuneration.Committee.ensures.control.over.the.implementation. of. the. company’s.remuneration. policy,. and,. where.necessary,.revises.and.amends.it.
During. the. reporting. period,. the.Remuneration. Committee. considered.the. remuneration. policy. (policies). and.its. (their). implementation. practices.and. advised. the. Board. of. Directors. as.necessary.
Compliance
4.1.3 The.company's.remuneration.policy.has. transparent. mechanisms. to.define. the. remuneration. amount.for. the. members. of. the. Board. of.Directors,.executive.bodies.and.other.key. executives. of. the. company,.and.governs.all. types.of.payments,.privileges. and. exemptions.provided.to.such.persons.
The. company's. remuneration. policy.(policies). has. transparent. mechanisms.to. define. the. remuneration. amount. for.the. members. of. the. Board. of. Directors,.executive.bodies.and.other.key.executives.of. the. company,. and. governs. all. types.of. payments,. privileges. and. exemptions.provided.to.such.persons.
Compliance
4.1.4 The. company. sets. a. compensation.policy.with.a. list.of.expenses. to.be.compensated,. and. the. service. level.that.may.be.sought.by.the.members.of.the.Board.of.Directors,.executive.bodies. and.other. key. executives. of.the. company.. Such. policy. may. be.part.of.the.company’s.remuneration.policy.
The. company’s. remuneration. policy.(policies).or.other.internal.documents.set.the. rules. of. compensating. the. expenses.of.the.members.of.the.Board.of.Directors,.executive.bodies.and.other.key.executives.of.the.company.
Compliance
Continuation of Table 1
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1 2 3 4 5
4.2 The. remuneration. system. for. the. members. of. the. Board. of. Directors. ensures. alignment. of. Directors’. financial. interests. with.shareholders’.long-term.financial.interests.
4.2.1 The. company. pays. a. fixed. annual.remuneration. to. the. members. of.the.Board.of.Directors..The.company.does. not. pay. a. remuneration. for.participation. in. individual. meetings.of. the. Board. of. Directors. or. its.committees..
The. company. does. not. apply. any.forms.of.short-term.motivation.and.additional.financial.incentives.to.the.members.of.the.Board.of.Directors.
A.fixed.annual.remuneration.was.a.single.monetary.remuneration.to.the.members.of. the.Board.of.Directors. for. their.work.in. the. Board. of. Directors. during. the.reporting.period.
Compliance
4.2.2 Long-term. shareholding. is. the.key. factor. aligning. the. financial.interests. of. the. members. of. the.Board. of. Directors. with. the. long-term. interests. of. the. shareholders,.the. company. not. conditioning. the.share.sale.rights.by.achieving.certain.performance. indicators,. and. the.members.of. the.Board.of.Directors.do. not. participate. in. option.programmes.
Where,. subject. to. the. company’s.internal. document(s). –. remuneration.policy. (policies). provides. (provide). that.the. members. of. the. Board. of. Directors.may. be. granted. company. shares,. such.granting. shall. be. governed. by. clear.and. disclosed. shareholding. rules. for.the. members. of. the. Board. of. Directors.intended. to. stimulate. long-term.holding.of.such.shares.
Compliance The. Bank. does. not. have. an.implemented.option.programme..
4.2.3 The. company. does. not. provide.for. any. additional. payments. or.compensations. in. case. of. early.termination. of. the. powers. of.the. members. of. the. Board. of.Directors.due.to.the.shift.of.control.over. the. company. or. any. other.circumstances.
The. company. does. not. provide. for. any.additional.payments.or.compensations.in.case. of. early. termination. of. the. powers.of.the.members.of.the.Board.of.Directors.due. to. the. shift. of. control. over. the.company.or.any.other.circumstances.
Compliance The. Bank. does. not. provide. for.any. additional. payments. or.compensations. in. case. of. early.termination. of. the. powers. of. a.member.of.the.Board.of.Directors.due.to.the.shift.of.control.over.the.Bank.or.any.other.circumstances.
4.3 The.system.of.remuneration.of.the.members.of.the.executive.bodies.and.other.key.executives.of.the.company.ensures.dependence.of.the.remuneration.on.company’s.results.and.their.personal.contribution.to.such.results.
4.3.1 The. remuneration. to. the. members.of. the. executive. bodies. and. other.key. executives. of. the. company. is.defined. so.as. to.ensure. reasonable.and. justified. correlation. between.the. axed. and. variable. parts. of.the. remuneration. depending. on.company's. results. and. employee’s.personal.(individual).contribution.to.the.final.result.
1..During. the. reporting. period,. the.annual. performance. indicators.approved. by. the. Board. of. Directors.were.used.to.define.the.amount.of.the.variable.remuneration.of.the.members.of.the.executive.bodies.and.other.key.executives.of.the.company..
2..In. making. the. last. assessment. of. the.remuneration.system.for.the.members.of. the. executive. bodies. and. other.key. executives. of. the. company,. the.Board. of. Directors. (Remuneration.Committee). ascertained. that. the.company. applies. an. efficient.correlation. between. the. axed. and.variable.parts.of.remuneration..
3..The.company.has.a.procedure.ensuring.that. any. unjustified. bonuses. received.by. the. members. of. the. executive.bodies.and.other.key.executives.of.the.company.are.returned.to.the.company.
Compliance
Continuation of Table 1
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1 2 3 4 5
4.3.2 The. company. implemented.a. long-term.motivation.programme.for.the.members. of. the. executive. bodies.and. other. key. executives. of. the.company. using. company. shares.(options. or. other. derivatives. with.the.underlying.asset.being.company.shares).
1..The. company. implemented. a. long-term. motivation. programme. for. themembers.of. the.executive.bodies.andother. key. executives. of. the. companyusing. company. shares. (financialinstruments. based. on. companyshares).
2..The. long-term.motivation.programmefor. the. members. of. executive. bodiesand. other. key. executives. of. thecompany.provides.that.the.right.to.saleshares.and.other.financial.instrumentsregarding. the. programme. occursonly. three.years.after. they.have.beengranted.or.later..Moreover,.the.right.toimplement.them.is.determined.by.theachievement. of. certain. performanceindicators.of.the.company.
Non-compliance
Bank’s. internal.documents.do.not.provide. a. long-term. motivation.programme. for. the. members. of.executive. bodies. and. other. key.executives. of. the. company. given.changes.in.the.share.price.
4.3.3 The. compensation. amount. (golden.parachute),. paid. by. the. company.in. case. of. early. termination. of. the.powers.of.the.members.of.executive.bodies.and.other.key.executives.on.company's. initiative.and.in.absence.of. any. fraud. on. their. part,. shall.not. exceed. the. double. amount.of. the. axed. part. of. the. annual.remuneration.
The. compensation. amount. (golden.parachute),.paid.by.the.company.in.case.of.early.termination.of.the.powers.of.the.members. of. executive. bodies. and. other.key. executives. on. company's. initiative.and.in.absence.of.any.fraud.on.their.part,.did.not.exceed.the.double.amount.of.the.axed.part.of.the.annual.remuneration.in.the.reporting.period.
Non-compliance
No. compensation. amount.(golden. parachute),. paid. by. the.Bank. in. case. of. early. termination.of. the. powers. of. the. members.of. executive. bodies. and. other.key. executives. of. the. company.on. company's. initiative. and. in.absence. of. any. fraud. on. their.part. is.provided.for.by.the.Bank’s.internal.regulations.
5.1 The.company.has.an.efficient.functioning.risk.management.and.internal.control.system.intended.to.ensure.reasonable.assurance.of.achieving.the.company’s.goals.
5.1.1 The. company's. Board. of. Directors.determined. the. principles. and.approaches. to. organising. risk.management. and. internal. control.system.in.the.company.
The. functions. of. company's. various.executive. bodies. and. units. in. the. risk.management. and. risk. control. system.are.clearly.defined.in.company's.internal.documents./.relevant.policy.approved.by.the.Board.of.Directors.
Compliance
5.1.2 The. company's. executive.bodies. ensure. the. creation. and.maintenance. of. an. efficient. risk.management. and. internal. control.system.in.the.company.
The.company's.executive.bodies.ensured.the.distribution.of.functions.and.powers.regarding.risk.management.and. internal.control.among.their.subordinate.heads.of.units.and.departments.
Compliance
5.1.3 The. company's. risk. management.and. internal. control. system.ensures. an. objective,. fair. and.clear. view. of. company's. current.status. and. perspectives,. integrity.and. transparency. of. company's.statements,. soundness. and.acceptability.of.the.risks.assumed.by.the.company.
1..The. company. has. an. approved. anti-corruption.policy.
2..The.company.has.an.available.way.ofnotifying. the.Board.of.Directors.or. itsAudit.Committee.on.violations.of.law,internal. procedures,. and. the. Code. ofEthics.of.the.company.
Compliance The. Board. of. Directors. has.approved. internal. documents.determining.the.measures.aimed.at.forming.the.elements.of.corporate.culture,. rules. and. procedures.eliminating.corrupt.practices..
The.above.standards.are.set.in.the.Corporate.Conduct.Code.and.the.Code.of.Corporate.Ethics.
Continuation of Table 1
Report on Compliance with the Principles and Recommendations of the Corporate Governance Code
75
1 2 3 4 5
5.1.4 The. company's. Board. of. Directors.takes.necessary.measures.to.ensure.that. the. company’s. existing. risk.management. and. internal. control.system. complies. with. the. Board.approved.principles.and.approaches.to. its. organization. and. functions.efficiently.
During. the. reporting. period,. the. Board.of. Directors. or. its. Audit. Committee.assessed.the.efficiency.of.company's.risk.management.and.internal.control.system..The.major.assessment.results.are.included.in.company's.annual.statement.
Compliance
5.2 A.systematic. independent.assessment.of.reliability.and.effectiveness.of.the.risk.management.and.internal.control.system.and.the.corporate.governance.practice.requires.that.the.company.sets.up.internal.audit.
5.2.1 For. the. purposes. of. internal. audit,.the. company. created. a. dedicated.unit. or. involved. an. independent.external. entity.. Functional. and.administrative. accountability. of. the.internal. audit. unit. are. delimited..Functionally,. the. internal. audit. unit.reports.to.the.Board.of.Directors.
For. the. purposes. of. internal. audit,. the.company.set.up.a.dedicated.internal.audit.unit.functionally.subordinate.to.the.Board.of.Directors.or. the.Audit.Committee,.or.involved. an. independent. external. entity.with.on.the.same.accountability.terms.
Compliance The.Bank.set.up.an.Internal.Audit.Department.
5.2.2 The. Internal. Audit. Department.assesses. the. efficiency. of. the.internal. control. system,. risk.management.system.and.corporate.governance. system.. The. company.applies. generally. accepted.business.standards.related.to.internal.audit.
1..During. the. reporting. period,. theefficiency. of. the. internal. control. andrisk.management.system.was.assessedas.part.of.internal.audit.
2..The. company. applies. generallyaccepted. approaches. to. internalcontrol.and.risk.management.
Compliance
6.1 The.company.and.its.business.are.transparent.for.the.shareholders,.investors.and.other.stakeholders.
6.1.1 The. company.has.a.developed.and.implemented. information. policy.ensuring. the.efficient. informational.interaction. between. the. company,.its.shareholders,.investors.and.other.stakeholders.
1..The. company's. Board. of. Directorsapproved. the. company's. informationpolicy.developed.in.line.with.the.Coderecommendations.
2..The. Board. of. Directors. (or. one. of. itscommittees). considered. the. issuesof. company's. compliance. with. itsinformation.policy.at.least.once.duringthe.reporting.period.
Partial compliance
In. 2019,. the. Board. of. Directors.of. the. Bank. did. not. consider.any. issues. related. to. the. Bank’s.compliance. with. its. information.policy.
6.1.2 The. company. discloses. the.information. on. the. corporate.governance. system. and. practice,.including. the. details. of. compliance.with. the. Code. recommendations.and.principles.
1..The.company.discloses.the.informationon. the. company’s. corporategovernance. system. and. generalprinciples. of. governance. systemapplied. in. the. company,. includingthrough.its.web-site.
2..The.company.discloses.the.informationon. the. membership. of. its. executivebodies. and. the. Board. of. Directors,independence.of. the.members.of. theBoard.and.their.membership. in.Boardof.Directors.committees.(as.defined.inthe.Code).
3..In. case. of. an. entity. controlling. thecompany,. the. company. publishes. amemorandum.of.the.controlling.entityregarding. such. entity’s. plans. withregard.to.corporate.governance.in.thecompany.
Compliance The. Bank. does. not. publish. a.memorandum. of. the. controlling.entity. regarding. such. entity’s.plans. with. regard. to. corporate.governance.in.the.Bank..
This. approach.may.be. changed. if.reasonably.needed.
Continuation of Table 1
Report on Compliance with the Principles and Recommendations of the Corporate Governance Code
76
1 2 3 4 5
6.2 The.company.makes.a.timely.and.complete.disclosure.of.up-to-date.and.true.information.on.the.company.to.enable.the.shareholders.and.investors.to.make.reasonable.decisions.
6.2.1 The. company. discloses. information.in. accordance. with. the. principles.of. regularity,. consistency,.and. promptitude,. as. well. as.comprehensibility,. accuracy,.completeness. and. comparability. of.the.data.disclosed.
1..The.company's.information.policy.setsapproaches. and. criteria. of. identifyinginformation.that.can.have.a.significantimpact. on. the. value. of. the. companyand. its. securities,. and. the.proceduresensuring. timely. disclosure. of. suchinformation.
2..Where. company's. securities. aretraded. on. foreign. organized. markets,essential. information. is. disclosed. onsynchronized.and.equivalent.basis.bothin. Russia. and. such. markets. during. areporting.year.
3..Where. foreign. shareholders. hold. anessential. amount. of. the. companyshares,. then. such. information. isdisclosed. both. in. Russian. and. oneof. the. most. widely. spread. foreignlanguages.during.a.reporting.year.
Compliance
6.2.2 The. company. avoids. a. formalistic.approach. in. disclosing. its.information,. and.discloses. essential.information.on. its.activities,.even. if.such. disclosure. is. not. required. by.law.
1..During. the. reporting. period,. thecompany. disclosed. its. annual. andsemi-annual. IFRS.financial.statements.The. company's. annual. statements. forthe. reporting. period. include. annualIFRS.financial.statements.with.an.auditreport.attached.
2..The.company.discloses.full.informationon. its. capital. structure. subject. toRecommendation.290.of. the.Code. inits. annual. statement. and. company'sweb-site.
Compliance
6.2.3 The. annual. statement. being. one.of. the. most. important. means.of. communication. with. the.shareholders. and. other. interested.parties. enables. them. to. assess. the.company’s.results.for.the.year.
1..The. company's. annual. statementdiscloses.the.key.aspects.of.company'soperations.and.financial.results.
2..The. company's. annual. statementdiscloses.information.on.environmentaland. social. aspects. of. company'soperations.
Compliance
6.3 The.company.provides.its.information.and.documents.on.shareholders’.request.in.accordance.with.the.principle.of.equal.accessibility.and.convenience.
6.3.1 The. company. provides. its.information. and. documents. on.shareholders’.request.in.accordance.with. the. principle. of. equal.accessibility.and.convenience.
The. company's. information. policy.determines. a. convenient. procedure. to.provide.its.shareholders,.on.their.request,.with. access. to. information,. including.the. information. on. the. legal. entities.controlled.by.the.company.
Compliance
Continuation of Table 1
Report on Compliance with the Principles and Recommendations of the Corporate Governance Code
77
1 2 3 4 5
6.3.2 The. company. provides. its.shareholders. with. any. information.ensuring. reasonable. balance.between. the. interests. of. particular.shareholders. and. those. of. the.company. itself,. as. the. company.is. interested. in. maintaining.confidentiality. of. essential.commercial. information. that. might.have. a. significant. impact. on. its.competitiveness.
1..During. the. reporting. period,. thecompany.did.not.reject.its.shareholders’requests. for. information,. or. suchrejections.were.reasonable.
2..Where. the. company's. informationpolicy. so. requires,. the. shareholdersare. notified. that. the. information. isconfidential.and.that.they.are.liable.formaintaining.its.confidentiality.
Compliance
7.1 Any. actions. with. a. significant. or. potentially. significant. impact. on. the. company's. capital. structure. and. financial. position. and,.accordingly,.shareholders’.position.(major.corporate.actions).are.carried.out.on.fair.terms.ensuring.compliance.with.the.rights.and.interests.of.the.shareholders.and.interested.parties.
7.1.1 Major. corporate. actions. are.reorganization. of. the. company,.acquisition.of.no. less. than.30.%.of.the.company.voting.shares.(merger),.significant. deals. transacted. by. the.company,. increase. or. decrease.in. the. company's. charter. capital,.listing. or. delisting. of. the. company.shares,. and. any. other. actions. that.may.result. in.significant.changes. in.shareholders’. rights. or. in. violation.of. their. interests.. The. company's.Charter. lists. the. transactions. or.other. actions. (their. criteria). that.are. significant. corporate. actions,.and. such. actions. are. classified. as.the. competence. of. the. company’s.Board.of.Directors.
1..The. company's. Charter. liststransactions. or. other. actions. thatare. major. corporate. actions. and. thedefining. criteria.. Decisions. on. majorcorporate.actions.are.the.competenceof. the. Board. of. Directors.. Wherelaw,. directly. or. indirectly,. classifiessuch. actions. as. the. competence. ofthe. General. Shareholders'. Meeting,the. Board. of. Directors. advises. theshareholders.accordingly.
2..The. company's. Charter. classifiesas. major. corporate. actions. at. leastthe. following:. reorganisation. of. thecompany,. acquisition. of. no. less. than30.%. of. the. company’s. voting. shares(merger),.significant.transactions.madeby.the.company,. increase.or.decreasein. company's. charter. capital,. listingand.delisting.company's.shares.
Compliance Part. of. the. above. issues. are.classified.by.the.Russian.legislation.and. the. Bank’s. Charter. not. as.the. competence. of. the. Board. of.Directors. but. as. the. competence.of. the. General. Shareholders'.Meeting.of.the.Bank..In.submitting.any.issues.for.consideration.by.the.General. Shareholders'. Meeting,.including.major.corporate.actions,.the.Board.of.Directors.advises.the.shareholders.accordingly.
7.1.2 The. Board. of. Directors. plays. a.key. role. in. making. decisions. or.advising.on.major.corporate.actions,.the. Board. of. Directors. relies. on.the. position. of. the. company’s.independent.directors.
The. company. has. a. procedure. whereby.the. independent. directors. notify. their.position.on.major.corporate.actions.prior.to.their.approval.
Partial compliance
This.principle.is.actually.applied.but.the.procedure.is.not.formalized..
The. Bank. has. approved. internal.documents. governing. the.procedure. for. the. preparation.and. holding. of. the. Board. of.Directors. meetings,. including. a.provision. requiring. that. meetings.are. held. at. least. with. a. 10-day.prior.notification..This.requirement.enables. independent. directors. to.declare. their. position. on. major.corporate. actions. prior. to. their.approval.
Continuation of Table 1
Report on Compliance with the Principles and Recommendations of the Corporate Governance Code
78
1 2 3 4 5
7.1.3 Major. corporate. actions. affecting.shareholders’. rights. and. legal.interests. are. carried. out. ensuring.equitable. conditions. for. all.company. shareholders,. and. where.legal. procedures. are. insufficient.to. protect. shareholders’. rights,.additional. measures. are. taken. to.protect. company. shareholders’.rights.and.legal.interests..In.this.case.the. company. is. governed. both. by.formal. legal. requirements. and. the.corporate.governance.principles.set.in.the.Code.
1..The. Сharter. of. the. company,. takinginto. account. the. peculiarities. of. itsactivity,. establishes. lower. than. theminimum. criteria. for. classifying. thetransactions. of. the. company. as. asignificant. corporate. action. thanprovided.by.law.
2..During.the.reporting.period,.all.majorcorporate. actions. underwent. theapproval. procedure. prior. to. theirapproval.
Partial compliance
In.2019,.the.Bank.did.not.carry.out.any.major.corporate.actions..
The.Bank’s.Charter.does.not.have.any.criteria.to.classify.transactions.as.major.corporate.actions.but.the.Bank.is.governed.by.the.applicable.law..
This. approach.may.be. changed. if.reasonably.needed.
7.2 The.company.provides.such.a.procedure.for.major.corporate.actions,.which.allows.timely.obtaining.by.shareholders.of.full.information.on.such.actions,.provides.for.their.ability.to.influence.effecting.such.actions.and.guarantees.observation.of.the.adequate.level.of.protection.of.their.rights.in.performing.such.actions.
7.2.1 The. information. on. carried. out.major.corporate.actions.is.disclosed.with. the. reasons,. terms. and.consequences.of.such.actions.
During.the.reporting.period,.the.company.makes. timely. and. detailed. disclosure.of. the. information. on. company's. major.corporate.actions,.including.their.reasons.and.time.frames.
Compliance
7.2.2 The.rules.and.procedures.governing.company's. major. corporate. actions.are. set. in. company's. internal.documents.
1..The. company's. internal. documentsprovide. for.a.procedure. for.attractingan.independent.assessor.to.define.thevalue.of.the.property.sold.or.bought.ina.major.transaction.or.in.a.transactionof.interest.
2..The. company's. internal. documentsprovide. for.a.procedure. for.attractingan. independent. assessor. to. evaluatethe.cost.of.acquisition.or.repurchase.ofcompany.shares.
3..Internal. documents. of. the. companyprovide.an.extended.list.of.reasons.forrecognizing.members.of. the.Board.ofDirectors. of. the. company. and. otherstatutorily. required. persons. as. havinga.stake.in.transactions.of.the.company.
Partial compliance
The.Bank.carries.out.transactions.of.interest.as.part.of.ordinary.business.in.accordance.with.current.market.conditions. without. attracting. an.independent.assessor..
The. Bank’s. internal. documents.do. not. provide. for. an. extended.list. of. reasons. for. classifying. the.members.of.the.Board.of.Directors.of. the. Bank. and. other. persons.identified. by. the. legislation. as.interested. in. the. company's.transactions.. Approval. and.notification. of. these. transactions.are. carried. out. in. accordance.with.the.current. legislation.of.the.Russian.Federation.
End of Table 1
Financial statements
80
Consolidated.financial.statements.prepared.in.accordance.with.International.Financial.Reporting.Standards.(IFRS)
CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2019
2019, RUB’000
2018, RUB’000
1 2 3
Assets
Cash.and.cash.equivalents 4.009.397 5.100.550
Mandatory.cash.balances.with.the.Central.Bank.of.the.Russian.Federation 456.035 386.641
Amounts.due.from.credit.institutions 10.769.894 9.982.367
Investment.securities 4.100.334 4.079.778
Derivative.financial.assets 40.009 5.359
Loans.to.customers: 41.173.529 35.179.162
•. loans.to.large.corporate.customers 25.061.258 19.969.618
•. loans.to.small.and.medium.corporate.customers 14.453.529 13.495.829
•. loans.to.retail.customers 1.658.742 1.713.715
Net.investments.in.finance.leases 1.200.286 1.375.770
Property.and.equipment,.including.right-of-use.assets 1.572.159 714.450
Intangible.assets 386.597 447.402
Deferred.income.tax.assets 306.207 373.559
Other.assets 1.174.243 1.999.981
Total.assets 65.188.690 59.645.019
Liabilities
Amounts.due.to.credit.institutions .13.006.561 .10.467.555
Derivative.financial.liabilities 1.347 4
Amounts.due.to.customers: 35.157.410 29.965.165
•. legal.entities,.state.and.non-profit.organizations 19.889.609 18.010.679
•. individuals 15.267.801 11.954.486
Debt.securities.issued – 3.059.954
Subordinated.loan 2.523.507 2.828.605
Lease.liabilities 620.560 –
Other.liabilities 539.419 711.623
Total.liabilities 51.848.804 47.032.906
Equity
Share.capital 10.820.181 10.820.181
Other.capital.reserves 1.803.914 1.803.914
Consolidated financial statements prepared in accordance with International Financial Reporting Standards (IFRS)
81
1 2 3
Revaluation.reserve.for.debt.investment.securities 15.342 .(14.783)
Revaluation.reserve.for.buildings 402.377 134.724.
Accumulated.profit.(loss) 298.072 (131.923)
Total.equity 13.339.886 .12.612.113
Total.equity.and.liabilities 65.188.690 59.645.019
Signed.and.authorised.for.release.on.behalf.of.the.Management.Board.of.the.Bank:
Giuseppe.Giampietro Chairman.of.the.Management.Board.
Tatyana.Pavlycheva Member.of.the.Management.Board./
Head.of.Accounting,.Planning.and.Control.Group./.Chief.accountant
25.February.2020
Consolidated financial statements prepared in accordance with International Financial Reporting Standards (IFRS)
82
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR 2019
2019, RUB’000
2018, RUB’000
1 2 3
Interest.income,.calculated.using.effective.interest.rate.method
Loans.to.customers 3.287.506 3.458.951
Amounts.due.from.credit.institutions. 364.259 533.701
Debt.investment.securities 280.616 258.378
3.932.381 4.251.030
Other.interest.income
Net.investments.in.finance.leases. 225.826 239.050
4.158.207 4.490.080
Interest.expense
Amounts.due.to.customers (816.026) (898.276)
Amounts.due.to.credit.institutions (377.876) (247.964)
Debt.securities.issued (231.550) .(301.713)
Subordinated.loan (170.386) (165.046)
Lease.liabilities (55.856) –
(1.651.694) (1.612.999)
Net.interest.income 2.506.513 2.877.081
Changes.in.allowance.for.credit.losses.on.interest-bearing.financial.assets (189.966) (433.404)
Net.interest.income.after.allowance.for.credit.losses.for.interest-bearing.financial.assets 2.316.547 2.443.677
Fee.and.commission.income 1.397.304 1.932.895
Fee.and.commission.expense (126.352) (126.919)
Net.fee.and.commission.income 1.270.952 1.805.976
Net.losses.from.investment.securities (640) (319)
Net.gains.from.foreign.currencies:
•. dealing 595.453 (228.142)
•. translation.differences .(298.329) 345.734
Net.losses.from.other.operating.activities (102.247) (67.463)
Operating.income 3.781.736 4.299.463
Personnel.expenses (1.623.778) (1.650.260)
Other.general.administrative.expenses. (1.053.984) (1.242.159)
Depreciation.and.amortization (585.926) (412.266)
Other.allowance.for.credit.losses 18.374 47.099
Profit.before.income.tax 536.422 1.041.877
Income.tax.expense (106.427) (172.556)
Profit.for.the.year 429.995 869.321
Consolidated financial statements prepared in accordance with International Financial Reporting Standards (IFRS)
83
1 2 3
Other.comprehensive.income.(loss).for.the.year
Items.that.are.or.may.be.reclassified.subsequently.to.profit.or.loss:
Revaluation.reserve.for.debt.investment.securities:
• net.change.in.fair.value 29.591 (40.993)
• net.amount.transferred.to.profit.or.loss 534 266
30.125 (40.727)
Items.that.will.not.be.reclassified.to.profit.or.loss:
Revaluation.of.buildings 267.653 (249.420)
Total.other.comprehensive.income.(loss).for.the.year,.net.of.income.tax 297.778 (290.147)
Total.comprehensive.income.for.the.year 727.773 579.174
Signed.and.authorised.for.release.on.behalf.of.the.Management.Board.of.the.Bank:
Giuseppe.Giampietro Chairman.of.the.Management.Board.
Tatyana.Pavlycheva Member.of.the.Management.Board./
Head.of.Accounting,.Planning.and.Control.Group./.Chief.accountant
25.February.2020
Consolidated financial statements prepared in accordance with International Financial Reporting Standards (IFRS)
84
Share capital
Other capital
reserves
Rev
alu
atio
n
rese
rve
for
deb
t in
vest
men
t se
curi
ties
Rev
alu
atio
n
rese
rve
for
bu
ildin
gs
Acc
um
ula
ted
p
rofi
t (l
oss
es)
Total equity
1 2 3 4 5 6 7
Balance.as.at.31.December.2017..(before.transition.to.IFRS.9)
10.820.181 1.803.914 22.802. 384.144. (586.463) 12.444.578.
Impact.of.adopting.IFRS.9.as.at.1.January.2018. – – 3.142. – (414.781) (411.639)
Balance.as.at.1.January.2018. 10.820.181 1.803.914 25.944. 384.144. (1.001.244) 12.032.939.
Total.comprehensive.income
Profit.for.the.year. – – – – 869.321 869.321
Other.comprehensive.loss
Items.that.are.or.may.be.reclassified.subsequently.to.profit.or.loss:
Revaluation.of.debt.investment.securities:
• Net.change.in.fair.value,.net.of.deferredtax.of.RUB.10.248.thousand
– – (40.993) – – (40.993)
• Net.amount.transferred.to.profit.or.loss,net.of.deferred.tax.of.RUB.67.thousand
– – 266 – – 266
– – (40.727) – – (40.727)
Items.that.will.not.be.reclassified.to.profit.or.loss:
Revaluation.of.buildings,.net.of.deferred.tax.of.RUB.62.355.thousand
– – – (249.420) – (249.420)
Total.other.comprehensive.loss – – (40.727) (249.420) – (290.147)
Total.comprehensive.income.for.the.year – – (40.727) (249.420) 869.321 579.174
Balance.as.at.31.December.2018. 10.820.181 1.803.914 (14.783) 134.724 (131.923) 12.612.113
Total.comprehensive.income
Profit.for.the.year – – – – 429.995 429.995
Other.comprehensive.income
Items.that.are.or.may.be.reclassified.subsequently.to.profit.or.loss
Revaluation.of.debt.investment.securities:
• Net.change.in.fair.value,.net.of.deferredtax.of.RUB.7.398.thousand
– – 29.591 – – 29.591
• Net.amount.transferred.to.profit.or.loss,net.of.deferred.tax.of.RUB.134.thousand
– – 534 – – 534
– – 30.125 – – 30.125
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR 2019
Consolidated financial statements prepared in accordance with International Financial Reporting Standards (IFRS)
85
1 2 3 4 5 6 7
Items.that.will.not.be.reclassified.to.profit.or.loss
Revaluation.of.buildings,.net.of.deferred.tax.of.RUB.66.913.thousand
– – – 267.653 – 267.653
Total.other.comprehensive.income – – 30.125 267.653 – 297.778
Total.comprehensive.income.for.the.year – – 30.125 267.653 429.995 727.773
Balance.as.at.31.December.2019. 10.820.181 1.803.914 15.342 402.377 298.072 13.339.886
Signed.and.authorised.for.release.on.behalf.of.the.Management.Board.of.the.Bank:
Giuseppe.Giampietro Chairman.of.the.Management.Board.
Tatyana.Pavlycheva Member.of.the.Management.Board./
Head.of.Accounting,.Planning.and.Control.Group./.Chief.accountant
25.February.2020
Consolidated financial statements prepared in accordance with International Financial Reporting Standards (IFRS)
86
CONSOLIDATED STATEMENT OF CASH FLOWS FOR 2019
2019, RUB’000
2018, RUB’000
1 2 3
Cash.flows.from.operating.activities
Interest.received 4.017.947 4.402.207
Interest.paid (1.570.558) (1.597.981)
Fees.and.commissions.received 2.263.066 912.675
Fees.and.commissions.paid (126.352) (129.966)
Net.receipts.(payments).for.dealing.in.foreign.currencies 562.145 (233.496)
Net.payments.for.other.operating.activities (95.703) (5.746)
Personnel.expenses.paid (1.627.919) (1.665.777)
Other.general.administrative.expenses.paid (1.016.727) (1.251.204)
Cash.flows.from.operating.activities.before.changes.in.operating.assets.and.liabilities 2.405.899 430.712
Net.(increase).decrease.in.operating.assets
Mandatory.cash.balances.with.the.Central.Bank.of.the.Russian.Federation (68.852) (87.662)
Amounts.due.from.credit.institutions (1.745.551) 4.285.686
Loans.to.customers (7.823.805) (5.208.888)
Net.investments.in.finance.leases 160.257 (43.711)
Other.assets (253.545) 156.349
Net.increase(decrease).in.operating.liabilities
Amounts.due.to.credit.institutions 3.176.835 3.711.611
Amounts.due.to.customers 6.704.960 (1.931.517)
Other.liabilities 97.897 (45.507)
Net.cash.provided.from.operating.activities.before.income.tax.paid 2.654.095 1.267.073
Income.tax.paid. (61.859) (55.486)
Net.cash.flows.provided.from.operating.activities 2.592.236 1.211.587
Cash.flows.from.investing.activities
Purchase.of.property.and.equipment (105.311) (76.662)
Proceeds.from.sale.of.property.and.equipment 1.650 400
Purchase.of.intangible.assets (154.205) (95.723)
Purchase.of.investment.securities (7.391.954) (4.642.945)
Proceeds.from.sale.and.redemption.of.investment.securities 7.400.980 4.608.540
Net.cash.flows.used.in.investing.activities (248.840) (206.390)
Consolidated financial statements prepared in accordance with International Financial Reporting Standards (IFRS)
87
1 2 3
Cash.flows.from.financing.activities
Repayment.of.lease.liabilities (213.640) –
Repayment.of.debt.securities.issued (3.000.000) (130.643)
Net.cash.flows.used.in.financing.activities (3.213.640) (130.643)
Effect.of.exchange.rates.changes.on.cash.and.cash.equivalents (220.909) 339.701
Net.(decrease).increase.in.cash.and.cash.equivalents (1.091.153) 1.214.255
Cash.and.cash.equivalents.as.at.the.beginning.of.the.year 5.100.550 3.886.295
Cash.and.cash.equivalents.as.at.the.end.of.the.year. 4.009.397 5.100.550
Signed.and.authorised.for.release.on.behalf.of.the.Management.Board.of.the.Bank:
Giuseppe.Giampietro Chairman.of.the.Management.Board.
Tatyana.Pavlycheva Member.of.the.Management.Board./
Head.of.Accounting,.Planning.and.Control.Group./.Chief.accountant
25.February.2020
The. complete. text. of. the. consolidated. financial.statement. and. the. auditors’. report. is. available.in. the. relevant. sections. of. the. bank’s. website..www.bancaintesa.ru.
88
Form.Code.by.OKUD.0409806
Quarterly.(Annual)
Annual.accounting.(financial).statements.(RAS)
BALANCE SHEET FOR 2019 (PUBLISHED FORM)
Lin
e N
o.
Item
As for the reporting period, RUB'000
As for the corresponding
period of the last year,
RUB'000
1 2 3 4
I. Assets
1 Cash 639.130 770.401
2 Credit.institution's.balances.with.the.Central.Bank.of.the.Russian.Federation 1.966.852 2.973.381
2.1 Mandatory.reserves 456.035 387.183
3 Due.from.credit.institutions 1.926.100 1.941.449
4 Financial.assets.at.fair.value.through.profit.or.loss 38.349 –
5 Net.loans.receivables.at.amortised.cost 53.039.682 ×
5а Net.loans.receivables × 44.649.476
6 Net.investments.in.financial.assets.at.fair.value.through.other.comprehensive.income 4.100.334 ×
6а Net.investments.in.securities.and.other.financial.assets.available-for-sale × 4.079.779
7Net. investments. in. securities. and. other. financial. assets. at. amortised. cost. (except. for.loans.receivables)
× ×
7а Net.investments.in.securities.held.to.maturity – –
8 Investments.in.subsidiaries.and.associates 3.000 3.000
9 Current.income.tax.asset 4.303 33.045
10 Deferred.tax.asset 475.397 697.604
11 Fixed.assets,.intangible.assets.and.inventories 1.469.184 1.236.219
12 Non-current.assets.held.for.sale 201.513 201.263
13 Other.assets 663.652 1.448.018
14 Total.assets 64.527.496 58.033.635
II. Liabilities
15 Loans,.deposits.and.other.amounts.due.to.the.Central.Bank.of.the.Russian.Federation 3.515.419 2.141.046
16 Customers.accounts.at.amortised.cost 47.289.604 41.134.268
16.1 Due.to.credit.institutions 12.000.235 11.103.706
16.2 Customers.accounts.(non-credit.institutions) 35.289.369 30.030.562
16.2.1 Deposits.(funds).of.individuals,.including.deposits.of.individual.entrepreneurs 16.361.673 12.898.957
17 Financial.liabilities.at.fair.value.through.profit.or.loss – –
Annual accounting (financial) statements (RAS)
89
1 2 3 4
17.1 Deposits.(funds).of.individuals,.including.deposits.of.individual.entrepreneurs – –
18 Issued.debt.instruments – 3.064.920
18.1 at.fair.value.through.profit.or.loss – –
18.2 at.amortised.cost – 3.064.920
19 Current.income.tax.liabilities 15.754 5.378
20 Deferred.tax.liabilities 249.713 41.189
21 Other.liabilities 266.177 564.364
22Provisions.for.possible.losses.on.credit.related.commitments,.other.possible.losses.and.for.transactions.with.offshore
82.181 76.170
23 Total.liabilities 51.418.848 47.027.335
III. Sources.of.equity
24 Shareholders'.(participants').equity 10.820.181 10.820.181
25 Treasury.shares – –
26 Share.premium – –
27 Reserve.fund 21.364 260.927
28Revaluation. at. fair. value. of. financial. assets. measured. at. fair. value. through. other.comprehensive.income,.net.of.deferred.tax.liability.(gross.with.deferred.tax.asset)
13.334 (17.671)
29 Fixed.assets.and.intangible.assets.revaluation,.net.of.deferred.tax.liability 450.078 182.426
30 Revaluation.of.long-term.employee.payables.(receivables) – –
31 Revaluation.of.hedging.instruments – –
32 Cash.received.in.the.form.of.grant.financing.(contribution.to.property) – –
33 Change.in.fair.value.of.financial.liability.due.to.change.in.credit.risk – –
34 Allowances.for.expected.credit.losses 2.509 –
35 Retained.profit.(loss) 1.801.182 (239.563)
36 Total.sources.of.equity 13.108.648 11.006.300
IV. Offbalance.sheet.liabilities
37 Credit.institution's.irrevocable.liabilities 7.311.023 3.368.536
38 Guarantees.and.sureties.issued.by.the.credit.institution 25.692.436 13.300.493
39 Non-credit.commitments 65.571 9.657
Signed.and.authorised.for.release.on.behalf.of.the.Management.Board.of.the.Bank:
Giuseppe.Giampietro Chairman.of.the.Management.Board.
Tatyana.Pavlycheva Member.of.the.Management.Board./
Head.of.Accounting,.Planning.and.Control.Group./.Chief.accountant
25.February.2020
Annual accounting (financial) statements (RAS)
90
INCOME STATEMENT FOR 2019 (PUBLISHED FORM)
PART 1. PROFIT OR LOSS
Form.Code.by.OKUD.0409807.Quarterly.(Annual)
Lin
e N
o.
Item
As for the reporting period, RUB'000
As for the corresponding
period of the last year,
RUB'000
1 2 3 4
1 Total.interest.income,.including.from: 3.945.930 4.138.596
1.1 Placement.with.credit.institutions 364.473 534.061
1.2 Loans.to.customers.(non-credit.institutions) 3.300.841 3.346.156
1.3 Provision.of.financial.lease.services – –
1.4 Investments.in.securities 280.616 258.379
2 Total.interest.expense,.including.on: 1.619.516 1.634.688
2.1 Funds.attracted.from.credit.institutions 551.151 415.544
2.2 Funds.attracted.from.customers.(non-credit.institutions) 837.067 921.772
2.3 Issued.securities 231.298 297.372
3 Net.interest.income.(negative.interest.margin) 2.326.414 2.503.908
4Total.change.in.provision.for.possible.losses.and.allowance.for.expected.credit.losses.on.loans,.outsanding.loans.and.their.equivalent,.amounts.on.correspondent.accounts,.and.on.accrued.interest.income,.including:
40.906 (14.375)
4.1Change.in.provision.for.possible.losses.and.allowance.for.expected.credit.losses.on.accrued.interest.income
23.023 83.406
5 Net.interest.income.(negative.interest.margin).after.provision.for.possible.losses 2.367.320 2.489.533
6 Net.income.from.transactions.with.financial.assets.at.fair.value.through.profit.or.loss 46.694 (8.600)
7 Net.income.from.transactions.with.financial.liabilities.at.fair.value.through.profit.or.loss – –
8 Net.income.from.transactions.with.securities.at.fair.value.through.other.comprehensive.income (640) ×
8а Net.income.from.transactions.with.securities.available-for-sale × (318)
9 Net.income.from.transactions.with.securities.at.amortised.cost – ×
9а Net.income.from.transactions.with.securities.held.to.maturity × –
10 Net.income.from.trading.in.foreign.currency 511.211 (219.543)
11 Net.income.from.foreign.exchange.translation (289.617) 352.925
12 Net.income.from.transactions.with.precious.metals – –
13 Income.from.equity.participation – –
14 Fee.and.commission.income 1.326.703 1.804.433
15 Fee.and.commission.expense 111.556 117.294
16Change.in.provision.for.possible.losses.and.allowance.for.expected.credit.losses.on.securities.at.fair.value.through.other.comprehensive.income
1.102 ×
16а Change.in.provision.for.possible.losses.on.securities.available-for-sales × –
17Change.in.provision.for.possible.losses.and.allowance.for.expected.credit.losses.on.securities.at.amortised.cost
– ×
17а Change.in.provision.for.possible.losses.on.securities.held.to.sale × 0
18 Change.in.allowance.for.other.losses (20.644) 31.552
19 Other.operating.income 230.847 285.114
Annual accounting (financial) statements (RAS)
91
1 2 3 4
20 Net.income.(expense) 4.061.420 4.617.802
21 Operating.expense 3.365.732 4.121.113
22 Profit.(loss).before.taxation 695.688 496.689
23 Tax.benefit.(expense) 271.612 173.905
24 Profit.(loss).from.continuous.operations 378.269 309.952
25 Profit.(loss).from.discontinued.operations 45.807 12.832
26 Profit.(loss).for.the.reporting.period 424.076 322.784
PART 2. OTHER COMPREHENSIVE INCOME
Lin
e N
o.
Item
As for the reporting period, RUB'000
As for the corresponding
period of the last year,
RUB'000
1 2 3 4
1 Profit.(loss).for.the.reporting.period 424.076 322.784
2 Other.comprehensive.income.(loss) × ×
3 Items,.which.are.not.reclassified.to.profit.or.loss,.total,.including: 334.565 (311.775)
3.1 change.in.fixed.assets.and.intangible.assets.revaluation.fund 334.565 (311.775)
3.2 change.in.payables.(receivables).revaluation.fund.on.postemployment.defined.benefit.plans – –
4 Income.tax,.related.to.captions,.which.may.not.be.reclassified.to.profit.or.loss 66.913 (62.355)
5 Other.comprehensive.income.(loss),.which.may.not.be.reclassified.to.profit.or.loss,.net.of.tax 267.652 (249.420)
6 Items,.which.may.be.reclassified.to.profit.or.loss,.total,.including: 37.379 (50.592)
6.1 change.in.financial.assets.at.fair.value.through.other.comprehensive.income.revaluation.fund 37.379 ×
6.1а change.in.financial.assets.available-for-sale.revaluation.fund × (50.592)
6.2 change.in.financial.liabilities.at.fair.value.through.profit.or.loss.revaluation.fund – –
6.3 change.in.fund.of.cash.flow.hedge – –
7 Income.tax,.related.to.captions,.which.may.be.reclassified.to.profit.or.loss 7.476 (10.118)
8 Other.comprehensive.income.(loss),.which.may.be.reclassified.to.profit.or.loss,.net.of.tax 29.903 (40.474)
9 Other.comprehensive.income.(loss),.net.of.tax 297.556 (289.894)
10 Financial.result.for.the.reporting.period 721.632 32.890
Signed.and.authorised.for.release.on.behalf.of.the.Management.Board.of.the.Bank:
Giuseppe.Giampietro Chairman.of.the.Management.Board.
Tatyana.Pavlycheva Member.of.the.Management.Board./
Head.of.Accounting,.Planning.and.Control.Group./.Chief.accountant
25.February.2020
Annual accounting (financial) statements (RAS)
92
STATEMENT OF CAPITAL ADEQUACY FOR RISK COVERAGE AS AT 01 JANUARY 2020 (PUBLISHED FORM)
SECTION 1. INFORMATION ON CAPITAL ADEQUACY Form.Code.by.OKUD.0409808.Quarterly.(Annual)
Lin
e N
o.
Instrument (item)
Val
ue
of
inst
rum
ent
(am
ou
nt
of
item
) as
at
the
rep
ort
ing
d
ate.
RU
B'0
00
Val
ue
of
inst
rum
ent
(am
ou
nt
of
item
) as
at
th
e b
egin
nin
g o
f th
e ye
ar. R
UB
'000
1 2 3 4
Base.capital.sources
1 Total.authorised.capital.and.share.premium,.including.that.formed.by: 10.820.181 10.820.181
1.1 ordinary.shares.(interest) 10.820.181 10.820.181
1.2 preference.shares – –
2 Retained.earnings.(loss): – (562.347)
2.1 of.previous.years – (562.347)
2.2 of.the.reporting.year – –
3 Reserve.fund 21.364 260.927
4 Shares.of.authorised.capital,.subject.to.gradual.elimination.from.equity.calculation .not.applicable .not.applicable
5 Instruments.of.the.base.capital.of.subsidiaries.owned.by.third.parties .not.applicable .not.applicable
6 Base.capital.sources,.total.(1+/-2+3-4+5) 10.841.545 10.518.761
Indicators.decreasing.the.amount.of.base.capital.sources.
7 The.adjustment.of.the.financial.instrument.cost .not.applicable .not.applicable
8 Goodwill,.net.of.deferred.tax.liabilities – –
9Intangible.assets.(excluding.goodwill.and.servicing.mortgage.rights.amounts),.net.of.deferred.tax.liabilities
487.717 483.796
10 Deferred.tax.assets.depending.on.the.future.profit 475.397 543.347
11 Cash.flow.hedging.reserve .not.applicable .not.applicable
12 Underestablished.impairment.allowance – –
13 Income.from.securitization.transactions .not.applicable .not.applicable
14 Gains.and.losses.related.to.changes.in.credit.risk.for.liabilities,.at.fair.value .not.applicable .not.applicable
15 Defined.benefit-plan.assets .not.applicable .not.applicable
16 Investments.in.own.shares.(interest) – –
17 Mutual.investments.in.base.capital.instruments.of.credit.and.financial.institutions .not.applicable .not.applicable
18 Insignificant.investments.in.base.capital.instruments.of.financial.institutions – –
19 Significant.investments.in.base.capital.instruments.of.financial.institutions 3.000 3.000
20 Rights.to.service.mortgage.loans .not.applicable .not.applicable
21 Deferred.tax.assets.not.depending.on.future.profit – –
22Total. amount. of. significant. investments. and. deferred. tax. assets. exceeding. 15.%. of. base.capital,.including:
– –
Annual accounting (financial) statements (RAS)
93
1 2 3 4
23 Significant.investments.in.base.capital.instruments.of.financial.institutions – –
24 Rights.to.service.mortgage.loans .not.applicable .not.applicable
25 Deferred.tax.assets.not.depending.on.future.profit – –
26Other.established.by.the.Central.Bank.of.the.Russian.Federation.indicators.that.decrease.the.amount.of.sources.of.base.capital
– –
27 Negative.amount.of.additional.capital – –
28Indicators.that.decrease.the.amount.of.base.capital.sources,.total.(sum.of.lines.from.7.to.22,.26.and.27)
966.114 1.030.143
29 Base.capital,.total.(lines.from.6.to.28) 9.875.431 9.488.618
Sources.of.Additional.capital.
30 Total.instruments.of.the.additional.capital.and.share.premium,.including: – –
31 classified.as.capital –. –
32 classified.as.liabilities –. –
33 Instruments.of.additional.capital,.subject.to.gradual.elimination.from.equity.calculation – –
34 Instruments.of.additional.capital.of.subsidiaries,.owned.by.third.parties,.including: .not.applicable .not.applicable
35Instruments. of. additional. capital. of. subsidiaries,. subject. to. gradual. elimination. from.equity.calculation
– –
36 Sources.of.additional.capital,.total.(the.sum.of.lines.30,.33.and.34) – –
Indicators.decreasing.the.amount.of.additional.capital.sources
37 Investments.in.own.additional.capital.instruments
38 Mutual.investments.in.additional.capital.instruments.of.credit.and.financial.institutions .not.applicable .not.applicable
39 Insignificant.investments.in.additional.capital.instruments.of.financial.institutions .not.applicable .not.applicable
40 Significant.investments.in.additional.capital.instruments.of.financial.institutions – –
41Other.indicators.that.decrease.the.amount.of.additional.capital.sources.as.established.by.the.Central.Bank
– –
42 Negative.amount.of.supplementary.capital – –
43 Indicators.decreasing.sources.of.additional.capital.(sum.of.lines.from.37.to.42) – –
44 Additional.capital,.total.(line.36.–.line.43) – –
45 Main.capital,.total.(line.29.+.line.44) 9.875.431 9.488.618
Sources.of.supplementary.capital.
46 Instruments.of.the.supplementary.capital.and.share.premium 3.365.860 3.260.696
47 Instruments.of.supplementary.capital,.subject.to.gradual.elimination.from.equity.calculation – –
48 Total.subsidiaries'.supplementary.capital.Instruments,.owned.by.third.parties,.including: .not.applicable .not.applicable
49Subsidiaries'. supplementary. capital. instruments,. subject. to. gradual. elimination. from.equity.calculation
.not.applicable .not.applicable
50 Impairment.allowance .not.applicable .not.applicable
51 Sources.of.supplementary.capital,.total.(sum.of.lines.46,.47,.48.and.50) 3.365.860 3.260.696
Indicators.that.decrease.the.amount.of.supplementary.capital.sources.
52 Investments.in.own.instruments.of.supplementary.capital – –
53 Mutual.investments.in.supplementary.capital.instruments.of.credit.and.financial.institutions .not.applicable .not.applicable
54Insignificant. investments. in.supplementary.capital. instruments.and.other. instruments. that.provide.the.overall.capacity.to.cover.financial.institutions'.losses
– –
Annual accounting (financial) statements (RAS)
94
1 2 3 4
54аinvestments. in. other. instruments. that. provide. the. overall. capacity. to. cover. financial.institutions'.losses
– –
55Significant. investments. in. supplementary. capital. instruments. and. other. instruments. that.provide.the.overall.capacity.to.cover.financial.institutions'.losses
– –
56Other.indicators.decreasing.the.amount.of.supplementary.capital.sources.established.by.the.Bank.of.Russia,.including:
– –
56.1 receivables.past.due.by.more.than.30.calendar.days – –
56.2excess. of. the. total. amount. of. loans,. bank. guarantees. and. sureties. provided. to. own.participants.(shareholders).and.insiders.over.its.maximum.amount
– –
56.3 investments.in.construction,.manufacture.and.purchase.of.fixed.assets.and.inventories – –
56.4difference. between. the. actual. share. value,. attributable. to. participants. left. from. the.organisation,.and.the.value,.at.which.the.share.was.sold.to.another.participant.of.the.organisation
– –
57 Indicators.decreasing.the.sources.of.supplementary.capital,.total.(the.sum.of.lines.from.52.to.56) – –
58 Supplementary.capital,.total.(line.51.–.line.57) 3.365.860 3.260.696
59 Equity,.total.(line.45.+.line.58) 13.241.291 12.749.314
60 Risk-weighted.assets: × ×
60.1 Necessary.for.determination.of.base.capital.adequacy 82.806.594 72.587.080
60.2 Necessary.for.determination.of.main.capital.adequacy 82.806.594 72.587.080
60.3 Necessary.for.determination.of.equity.adequacy 82.989.020 72.764.973
Equity.adequacy.indicators.and.markup.to.the.regulatory.required.amount.of.equity,.%
61 Base.capital.adequacy.(29/60.1) 11.9259 13.0720
62 Main.capital.adequacy.(29/60.2) 11.9259 13.0720
63 Equity.adequacy.(59/60.3) 15.9555 17.5212
64 Markup.to.the.required.amount.of.regulatory.capital,.total,.including: 6.7523 6.3898
65 Markup.to.maintain.a.statutory.capital.adequacy.ratio 2.2500 1.8750
66 anticyclical.markup 0.0023 0.0148
67 markup.for.banks'.systematical.importance .not.applicable .not.applicable
68 base.capital.available.to.maintain.markups.to.the.regulatory.required.amount.of.equity 5.9260 7.0720
Equity.adequacy.indicators,.%.
69 Base.capital.adequacy 4.5000 4.5000
70 Main.capital.adequacy 6.0000 6.0000
71 Equity.adequacy 8.0000 8.0000
Indicators,.not.exceeding.stated.levels.of.materiality,.for.a.deduction.of.capital.sources.
72Insignificant.investments.in.capital.instruments.and.other.instruments.that.provide.the.overall.capacity.to.cover.financial.institutions'.losses
– –
73 Significant.investments.in.base.capital.instruments.of.financial.institutions – –
74 Rights.to.service.mortgage.loans .not.applicable .not.applicable
75 Deferred.tax.assets.not.depending.on.future.profit – –
Restrictions.on.inclusion.of.impairment.allowances.in.supplementary.capital.calculation.
76Impairment.allowances.included.in.supplementary.capital.calculation.in.relation.to.positions.included.in.credit.risk.calculation,.which.are.subject.to.standardised.approach
.not.applicable .not.applicable
Annual accounting (financial) statements (RAS)
95
1 2 3 4
77Limitations.on. including. the. amounts.of. impairment. allowances. in. supplementary. capital.calculation.under.standardised.approach
.not.applicable .not.applicable
78Impairment.allowances.included.in.supplementary.capital.calculation.in.relation.to.positions.for.credit.risk.calculation,.for.which.the.approach.based.on.internal.models.is.applied
.not.applicable .not.applicable
79Limitations.on. including. the. amounts.of. impairment. allowances. in. supplementary. capital.calculation.under.the.approach.based.on.internal.models
.not.applicable .not.applicable
Instruments.that.are.subject.to.gradual.elimination.from.equity.calculation.(applicable.from.1.January.2018.to.1.January.2022)
80Current.limitation.on.inclusion.of.instruments,.that.are.subjects.to.gradual.elimination.from.equity.calculation,.in.the.structure.of.base.capital.sources
.– –
81 Instruments.not.included.in.the.structure.of.base.capital.sources.due.to.limitations –. –
82Current.limitation.on.inclusion.of.instruments,.that.are.subjects.to.gradual.elimination.from.equity.calculation,.in.the.structure.of.additional.capital.sources
.– –
83 Instruments.not.included.in.the.structure.of.additional.capital.sources.due.to.limitations –. –
84Current.limitation.on.inclusion.of.instruments,.that.are.subjects.to.gradual.elimination.from.equity.calculation,.in.the.structure.of.supplementary.capital.sources
–. –
85 Instruments.not.included.in.the.structure.of.supplementary.capital.sources.due.to.limitations –. –
Lin
e N
o.
Feature of instrumentDescription of
instrument featureDescription of
instrument feature
1 2 3 4
1 Short.firm.name.of.the.equity.instrument.issuer Banca.Intesa.JSCINTESA.SANPAOLO..
BANK.LUXEMBOURG.S.A.
2 Instrument.ID.number 10302216B not.applicable
3 Applicable.legislation RUSSIAN.FEDERATIONGRAND.DUCHY.OF.
LUXEMBOURG
3аto. other. instruments. that. provide. the. overall. capacity. to. cover.losses
not.applicable not.applicable
Regulatory.conditions
4Level.of.capital,. in.which. instrument. is. included.during.the."Basel.III".transition.period
not.applicable not.applicable
5Level.of.capital,.in.which.instrument.is.included.after.the."Basel.III".transition.period
base.capital supplementary.capital
6 Consolidation.level,.at.which.instrument.is.included.in.the.capitalon.individual.basis.and.at.
the.bank.group.levelon.individual.basis
7 Type.of.instrument ordinary.sharessubordinated.loan..
(deposit,.borrowing)
8 Value.of.instrument.included.in.the.capital.calculation,.RUB'000 10.820.181 2.476.228
9 Nominal.value.of.Instrument 10.820.181.thousand.RUB 40.000.thousand.USD
10 Classification.of.instrument.for.the.accounting.purposes share.capital liability.at.amortised.cost
11 Instrument.issue.(attraction,.placement).date January.11,.2010 December.11,.2015
12 Available.term.to.maturity.for.instrument termless term
13 Instrument.maturity.date without.time.limitation December.30,.2025
14Available. early. redemption. (offer). of. instrument,. agreed. with. the.Bank.of.Russia
not.applicable yes
SECTION 4. MAIN FEATURES OF CAPITAL INSTRUMENTS
Annual accounting (financial) statements (RAS)
96
1 2 3 4
15Initial.date.(dates).of.probable.rights.execution.for.early.redemption.of. instrument,. conditions. for. such. rights. execution. and. the.redemption.amount
not.applicablean.option.of.prepayment.
with.the.consent.of.the.Bank.of.Russia
16Subsequent.date.(dates).of.rights.execution.for.early.redemption.of.instrument
not.applicable not.applicable
Interests./.dividends./.coupon.income
17 Rate.type.of.instrument not.applicable fixed.rate
18 Rate./.Index.used.as.the.base.for.rate.calculationnot.applicable./.not.
applicable6.58./.not.applicable
19Existence.of.conditions.for.discontinuation.of.dividend.payment.on.ordinary.shares
not.applicable not.applicable
20 Obligation.to.pay.dividends
entirely.at.the.discretion.of.the.main.credit.institution.
and/or.the.bank.group.member
not.applicable
21Existence. of. conditions,. envisaging. the. increase. of. payments. on.instrument.or.other.incentives.to.long.term.redemption.of.instrument
no not.applicable
22 Nature.of.payments non-cumulative not.applicable
23 Convertibility.of.instrument not.converted converted
24 Conditions,.under.which.instrument.is.converted not.applicable
in.case.of.N1.1.decrease.below.2.%.or.receipt.of.
notification.from.DIA.about.the.decision.to.implement.
bankruptcy.prevention.measures
25 Full.or.partial.conversion not.applicable full.or.partial
26 Conversion.rate not.applicable 1
27 Compulsory.conversion not.applicable compulsory
28 The.level.of.capital,.in.which.the.instrument.is.converted not.applicable base.capital
29Instrument. issuer's. short. firm.name,. into.which. the. instrument. is.converted
not.applicable Banca.Intesa.JSC
30 The.ability.to.write.off.instrument.to.cover.losses yes no
31 Conditions,.under.which.instrument.is.written-offin.case.of.equity.decrease.below.the.amount.of.the.
share.capitalnot.applicable
32 Full.or.partial.write-off always.partial not.applicable
33 Constant.of.temporary.write-off constant not.applicable
34 Recovery.mechanism not.used not.applicable
34а Subordination.type not.applicable not.applicable
Annual accounting (financial) statements (RAS)
97
1 2 3 4
35 Subordination.of.the.instrument not.applicable yes
36Compliance.with.the.Regulatory.requirements.of.the.Bank.of.Russia.#646-P.and.#509-P
yes yes
37 Description.of.non-compliances not.applicable not.applicable
Signed.and.authorised.for.release.on.behalf.of.the.Management.Board.of.the.Bank:
Giuseppe.Giampietro Chairman.of.the.Management.Board.
Tatyana.Pavlycheva Member.of.the.Management.Board./
Head.of.Accounting,.Planning.and.Control.Group./.Chief.accountant
25.February.2020
Annual accounting (financial) statements (RAS)
98
Lin
e N
o
Item
Shar
e ca
pit
al
Trea
sury
sh
ares
Shar
e p
rem
ium
Rev
alu
atio
n o
f se
curi
ties
ava
ilab
le
for
sale
at
fair
val
ue
red
uce
d b
y d
efer
red
ta
x lia
bili
ty (
incr
ease
d
by
def
erre
d t
ax a
sset
)
Rev
alu
atio
n o
f fi
xed
as
sets
an
d in
tan
gib
le
asse
ts m
ult
iplie
d b
y d
efer
red
tax
liab
ility
Incr
ease
(d
ecre
ase)
o
f lia
bili
ties
(cl
aim
s)
on
lon
g t
erm
p
ost
-em
plo
ymen
t re
mu
ner
atio
ns
pay
able
to
em
plo
yees
at
rev
alu
atio
n
Hed
gin
g in
stru
men
ts
reva
luat
ion
Res
erve
fu
nd
Gra
nt
fun
din
g
(co
ntr
ibu
tio
ns
into
p
rop
erty
)
Ch
ang
e in
fai
r va
lue
of
fin
anci
al li
abili
ty d
ue
to c
han
ge
in c
red
it r
isk
Allo
wan
ces
for
exp
ecte
d c
red
it lo
sses
Ret
ain
ed e
arn
ing
s (l
oss
)
Tota
l so
urc
es o
f eq
uit
y
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
1 Data.at.the.beginning.of.the.previous.reporting.year 10.820.181 – – 22.803 431 846 – – 260 927 – – – (562 347) 10 973 410
2 Impact.of.changes.in.accounting.policy.provisions – – – – – – – – – – – – –
3 Impact.of.errors.correction – – – – – – – – – – – – –
4 Data.at.the.beginning.of.the.previous.reporting.year.(adjusted) 10.820.181 22.803 431 846 – 260 927 – – – (562 347) 10 973 410
5 Comprehensive.income.for.the.previous.reporting.period: (40.474) (249 420) – – – – – – 322 784 32 890
5.1 profit.(loss) – – – – – – 322 784 322 784
5.2 other.comprehensive.income (40.474) (249 420) – – – – – – (289 894)
6 Stock.issue: – – – – – – – – – – – – –
6.1 par.value – – – – – – – – – – – – –
6.2 share.premium – – – – – – – – – – – – –
7 Treasury.shares: – – – – – – – – – – – – –
7.1 acquisitions – – – – – – – – – – – – –
7.2 disposals – – – – – – – – – – – – –
8 Change.of.fixed.assets.and.intangible.assets.cost – – – – – – – – – – – – –
9 Declared.dividends.and.other.payments.to.shareholders.(participants): – – – – – – – – – – – – –
9.1 for.ordinary.shares – – – – – – – – – – – – –
9.2 for.preferred.shares – – – – – – – – – – – – –
10Other. shareholders'. (participants'). contributions. and. distribution. to.shareholders.(participants)
– – – – – – – – – – – – –
11 Other.movements – – – – – – – – – – – – –
12 Data.for.the.respective.prior.year.period 10.820.181 – – (17.671) 182 426 – – 260 927 – – – (239 563) 11 006 300
13 Data.at.the.beginning.of.the.reporting.year 10.820.181 – – (17.671) 182 426 – – 260 927 – – – (239 563) 11 006 300
14 Impact.of.changes.in.accounting.policy.provisions – – – – – – – – – – 3 611 1 377 106 1 380 717
15 Impact.of.errors.correction – – – – – – – – – –
16 Data.at.the.beginning.of.the.reporting.year.(adjusted) 10.820.181 – – (17.671) 182 426 – – 260 927 – – 3 611 1 137 543 12 387 017
17 Comprehensive.income.for.the.reporting.period: – – – 31.005 267 652 – – – – – (1 102) 424 076 721 631
17.1 profit.(loss) – – – – – – – – – – – 424 076 424 076
17.2 other.comprehensive.income – – – 31.005 267 652 – – – – – (1 102) – 297 555
18 Stock.issue: – – – – – – – – – – – – –
18.1 par.value – – – – – – – – – – – – –
18.2 share.premium – – – – – – – – – – – – –
19 Treasury.shares: – – – – – – – – – – – – –
19.1 acquisitions – – – – – – – – – – – – –
19.2 disposals – – – – – – – – – – – – –
STATEMENT OF CHANGES IN EQUITY OF THE CREDIT INSTITUTION (PUBLISHED FORM), RUB’000
Form.Code.by.OKUD.0409810.Quarterly.(Annual)
Annual accounting (financial) statements (RAS)
99
Lin
e N
o
Item
Shar
e ca
pit
al
Trea
sury
sh
ares
Shar
e p
rem
ium
Rev
alu
atio
n o
f se
curi
ties
ava
ilab
le
for
sale
at
fair
val
ue
red
uce
d b
y d
efer
red
ta
x lia
bili
ty (
incr
ease
d
by
def
erre
d t
ax a
sset
)
Rev
alu
atio
n o
f fi
xed
as
sets
an
d in
tan
gib
le
asse
ts m
ult
iplie
d b
y d
efer
red
tax
liab
ility
Incr
ease
(d
ecre
ase)
o
f lia
bili
ties
(cl
aim
s)
on
lon
g t
erm
p
ost
-em
plo
ymen
t re
mu
ner
atio
ns
pay
able
to
em
plo
yees
at
rev
alu
atio
n
Hed
gin
g in
stru
men
ts
reva
luat
ion
Res
erve
fu
nd
Gra
nt
fun
din
g
(co
ntr
ibu
tio
ns
into
p
rop
erty
)
Ch
ang
e in
fai
r va
lue
of
fin
anci
al li
abili
ty d
ue
to c
han
ge
in c
red
it r
isk
Allo
wan
ces
for
exp
ecte
d c
red
it lo
sses
Ret
ain
ed e
arn
ing
s (l
oss
)
Tota
l so
urc
es o
f eq
uit
y
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
1 Data at the beginning of the previous reporting year 10 820 181 – – 22 803 431.846 – – 260.927 – – – (562.347) 10.973.410
2 Impact of changes in accounting policy provisions – – – – – – – – – – – – –
3 Impact of errors correction – – – – – – – – – – – – –
4 Data at the beginning of the previous reporting year (adjusted) 10 820 181 22 803 431.846 – 260.927 – – – (562.347) 10.973.410
5 Comprehensive income for the previous reporting period: (40 474) (249.420) – – – – – – 322.784 32.890
5.1 profit (loss) – – – – – – 322.784 322.784
5.2 other comprehensive income (40 474) (249.420) – – – – – – (289.894)
6 Stock issue: – – – – – – – – – – – – –
6.1 par value – – – – – – – – – – – – –
6.2 share premium – – – – – – – – – – – – –
7 Treasury shares: – – – – – – – – – – – – –
7.1 acquisitions – – – – – – – – – – – – –
7.2 disposals – – – – – – – – – – – – –
8 Change of fixed assets and intangible assets cost – – – – – – – – – – – – –
9 Declared dividends and other payments to shareholders (participants): – – – – – – – – – – – – –
9.1 for ordinary shares – – – – – – – – – – – – –
9.2 for preferred shares – – – – – – – – – – – – –
10Other shareholders' (participants') contributions and distribution toshareholders (participants)
– – – – – – – – – – – – –
11 Other movements – – – – – – – – – – – – –
12 Data for the respective prior year period 10 820 181 – – (17 671) 182.426 – – 260.927 – – – (239.563) 11.006.300
13 Data at the beginning of the reporting year 10 820 181 – – (17 671) 182.426 – – 260.927 – – – (239.563) 11.006.300
14 Impact of changes in accounting policy provisions – – – – – – – – – – 3.611 1.377.106 1.380.717
15 Impact of errors correction – – – – – – – – – –
16 Data at the beginning of the reporting year (adjusted) 10 820 181 – – (17 671) 182.426 – – 260.927 – – 3.611 1.137.543 12.387.017
17 Comprehensive income for the reporting period: – – – 31 005 267.652 – – – – – (1.102) 424.076 721.631
17.1 profit (loss) – – – – – – – – – – – 424.076 424.076
17.2 other comprehensive income – – – 31 005 267.652 – – – – – (1.102) – 297.555
18 Stock issue: – – – – – – – – – – – – –
18.1 par value – – – – – – – – – – – – –
18.2 share premium – – – – – – – – – – – – –
19 Treasury shares: – – – – – – – – – – – – –
19.1 acquisitions – – – – – – – – – – – – –
19.2 disposals – – – – – – – – – – – – –
Annual accounting (financial) statements (RAS)
100
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
20 Change.of.fixed.assets.and.intangible.assets.cost – – – – – – – – – – – – –
21 Declared.dividends.and.other.payments.to.shareholders.(participants): – – – – – – – – – – – – –
21.1 for.ordinary.shares – – – – – – – – – – – – –
21.2 for.preferred.shares – – – – – – – – – – – – –
22Other. shareholders'. (participants'). contributions. and. distribution. to.shareholders.(participants)
– – – – – – – – – – – – –
23 Other.movements – – – – – – – (239.563) – – – 239.563 –
24 Data.for.the.reporting.period 10.820.181 – – 13.334 450.078 – – 21.364 – – 2.509 1.801.182 13.108.648
Signed.and.authorised.for.release.on.behalf.of.the.Management.Board.of.the.Bank:
Giuseppe.Giampietro Chairman.of.the.Management.Board.
Tatyana.Pavlycheva Member.of.the.Management.Board./
Head.of.Accounting,.Planning.and.Control.Group./.Chief.accountant
25.February.2020
Annual accounting (financial) statements (RAS)
101
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
20 Change.of.fixed.assets.and.intangible.assets.cost – – – – – – – – – – – – –
21 Declared.dividends.and.other.payments.to.shareholders.(participants): – – – – – – – – – – – – –
21.1 for.ordinary.shares – – – – – – – – – – – – –
21.2 for.preferred.shares – – – – – – – – – – – – –
22Other. shareholders'. (participants'). contributions. and. distribution. to.shareholders.(participants)
– – – – – – – – – – – – –
23 Other.movements – – – – – – – (239.563) – – – 239.563 –
24 Data.for.the.reporting.period 10.820.181 – – 13.334 450.078 – – 21.364 – – 2.509 1.801.182 13.108.648
Signed.and.authorised.for.release.on.behalf.of.the.Management.Board.of.the.Bank:
Giuseppe.Giampietro Chairman.of.the.Management.Board.
Tatyana.Pavlycheva Member.of.the.Management.Board./
Head.of.Accounting,.Planning.and.Control.Group./.Chief.accountant
25.February.2020
Annual accounting (financial) statements (RAS)
102
INFORMATION ON MANDATORY RATIOS, FINANCIAL LEVERAGE RATIO AND LIQUIDITY COVERAGE RATIO AS AT 01 JANUARY 2020 (PUBLISHED FORM)
SECTION 1. INFORMATION ON MANDATORY RATIOS OF THE CREDIT INSTITUTION (BANK GROUP)
Lin
e N
o.
Item
Actual value
As at the reporting
date
As of one quarter
before the reporting
date
As of two quarters
before the reporting
date
As of three
quarters before the reporting
date
As of four quarters
before the reporting
date
1 2 3 4 5 6 7
Capital,.RUB’000
1 Base.capital 9.875.431 9.842.843 9.822.454 9.801.308 9.488.618
1аBase.capital.in.case.of.full.application.of.the.expected.credit.loss.model.regardless.of.impact.of.transitional.measures
9.875.431 9.842.843 9.822.454 9.801.308
2 Main.capital 9.875.431 9.842.843 9.822.454 9.801.308 9.488.618
2аMain. capital. in. case. of. full. application. of. the. expected.credit.loss.model
9.875.431 9.842.843 9.822.454 9.801.308
3 Equity 13.241.291 13.219.129 12.977.332 12.736.144 12.749.314
ЗаEquity.in.case.of.full.application.of.the.expected.credit.loss.model
14.237.323 14.316.974 14.127.539 13.944.103
Risk-weighted.assets,.RUB’000
4 Risk-weighted.assets 82.989.020 69.807.223 67.577.659 64.855.664 72.764.973
Capital.adequacy.ratios,.%
5 Base.capital.adequacy.ratio.N1.1.(N20.1) 11.9259 14.1370 14.5740 15.1550 13.0720
5аBase.capital.adequacy.ratio.in.case.of.full.application.of.the.expected.credit.loss.model
11.3330 13.3580 13.6910 14.1980
6 Main.capital.adequacy.ratio.N1.2.(N20.2) 11.9259 14.1370 14.5740 15.1550 13.0720
6аMain.capital.adequacy.ratio.in.case.of.full.application.of.the.expected.credit.loss.model
11.3330 13.3580 13.6910 14.1980
7 Equity.adequacy.ratio.N1.0.(N1cc,.N1.3,.N20.0) 15.9555 18.9370 19.2040 19.6380 17.5210
7аEquity. adequacy. ratio. in. case. of. full. application. of. the.expected.credit.loss.model
16.3050 19.3830 19.6420 20.1450
Base.capital.markups.(in.percentage.of.risk-weighted.assets),.%
8 Markup.to.maintain.a.statutory.capital.adequacy.ratio 2.2500 2.1250 2.0000 1.8750 1.8750
9 Anticyclical.markup 0.0023 0.0000 0.0060 0.0000 0.0148
10 Markup.for.systematical.importance
11Markups.to.the.regulatory.required.amount.of.equity,.total.(line.8.+.line.9.+.line.10)
2.2520 2.1250 2.0060 1.8750 1.8900
12Base.capital.available.to.maintain.markups.to.the.regulatory.required.amount.of.equity
5.9260 8.1370 8.5740 9.1550 7.0720
Form.Code.by.OKUD.0409813.Quarterly.(Annual)
Annual accounting (financial) statements (RAS)
103
1 2 3 4 5 6 7
Financial.leverage.ratio
13The. amount. of. Balance. sheet. assets. and. off-balance.claims.at.risk.for.purposes.of.financial.leverage.calculation,.RUB'000
87.403.966 69.239.021 70.864.486 70.653.275 70.089.747
14 Bank.financial.leverage.ratio.(N1.4),.bank.group.(N20.4),.% 11.2986 14.2160 13.8610 13.8720 13.5340
14аFinancial.leverage.in.case.of.full.application.of.the.expected.credit.loss.model,.%
10.9420 13.7320 13.3920 13.0100
Short-term.liquidity.ratio
15 Highly.liquid.assets,.RUB'000
16 Net.expected.cash.outflow,.RUB'000
17 Short-term.liquidity.ratio.N26.(N27),.%
Structural.liquidity.ratio.(net.stable.funding.ratio)
18 Available.stable.funding.(ASF),.RUB'000
19 Required.stable.funding.(RFS),.RUB'000
20Structural. liquidity. ratio. (net. stable. funding. ratio). N28.(N29),.%
Ratios.limiting.certain.types.of.risks,.%
21 Bank.instant.liquidity.ratio.N2 56.5650 95.8530 87.3180 97.2120 66.0730
22 Bank.current.liquidity.ratio.N3 94.1280 75.7130 93.1180 81.4240 87.1800
23 Bank.long-term.liquidity.ratio.N4 91.9620 96.2040 83.4530 81.4430 69.1400
24
Ratio.of.maximum.amount.of.risk.per.one.borrower.or.a.group.of.related.borrowers.N6.(N21)
max.amount
number.of.breaches
duration
.
18.7
0
0
.
19.5
0
0
.
19.9
0
0
.
20.3
0
0
.
21.8
0
0
25 Ratio.of.maximum.amount.of.major.credit.risks.N7.(N22) 296.5310 216.2280 225.4950 218.1040 233.8530
26 Ratio.of.total.amount.of.risk.on.bank.insiders.(N10.1) 0.2000 0.1980 0.2360 0.1870 0.2070
27Equity.utilization.ratio.for.purchase.of.shares.(interest).of.other.legal.entities.N12.(N23)
0.0000 0.0000 0.0000 0.0000 0.0000
28
Ratio.of.maximum.proportion.of.the.amount.of.risk.for.a.related.borrower.(a.group.of.related.borrowers).N25
max.amount
number.of.breaches
duration
.
12.7
0
0
.
10.2
0
0
.
13.1
0
0
.
12.8
0
0
.
11.2
0
0
Annual accounting (financial) statements (RAS)
104
SECTION 2. INFORMATION ON THE FINANCIAL LEVERAGE CALCULATION (N1.4)
Subsection 2.1. Calculation of the amount of Balance sheet assets and off-balance claims at risk for purposes of financial leverage calculation (N1.4)
Subsection 2.2. Calculation of the financial leverage ratio (N1.4)
Line No.
Item Amount, RUB'000
1 2 3
1 Amount.of.the.assets.according.to.Balance.sheet.(published.form),.total: 64.527.496
2
Adjustment.of.investments.in.the.capital.of.credit,.financial,.insurance.and.other.organisations,.reporting. data. of. which. are. included. in. the. consolidated. financial. statements,. but. are. not.included.in.equity.calculation,.mandatory.standards.and.sizes.(limits).of.open.currency.position.of.the.banking.group
not.applicable.for.the.financial.statements.of.
credit.institution.as.a.legal.entity
3Adjustments.of.fiduciary.assets.recognised.in.accordance.with.accounting.rules,.but.not.included.in.the.calculation.of.financial.leverage.indicators
0
4 Adjustment.of.derivative.financial.instruments.(DFI) 9.865
5 Adjustment.of.securities.lending.transactions 0
6 Adjustment.regarding.matching.to.credit.equivalent.of.credit.related.commitments 26.682.552
7 Other.adjustments 3.815.947
8The.amount.of.Balance.sheet.assets.and.off-balance.claims.at.risk,.taking.into.account.adjustments.to.calculate.the.financial.leverage,.total:
87.403.966
Line No.
Item Amount, RUB'000
1 2 3
Risk.on.the.Balance.sheet.assets
1 Amount.of.Balance.sheet.assets,.total: 61.639.314
2Reducing. adjustment. by. the. sum. of. indicators. to. be. taken. in. a. decrease. of. the. main. capital.sources'.value
966.114
3The.amount.of.adjusted.Balance.sheet.assets.at.risk.(the.difference.between.the. lines.1.and.2),.total:
60.673.200
Risk.on.the.operations.with.DFI
4Current. credit. risk.on.DFI.operations. (net.of. variation.margin.and/or.with.netting.of. items,. if.applicable),.total:
38.349
5 Potential.credit.risk.per.counterparty.on.DFI.operations,.total: 9.865
6Adjustment.in.the.sum.of.collateral.nominal.value.on.DFI.transactions,.to.be.written.off.from.the.Balance.sheet
not.applicable
7 Reducing.adjustment.for.the.variation.margin.listed.in.prescribed.cases 0
8Adjustment.regarding.the.bank's.claims.–.clearing.participant.to.the.central.counterparty.for.the.execution.of.customer.transactions
0
9 Adjustment.to.take.account.of.credit.risk.according.to.the.basic.assets.of.issued.credit.DFI 0
10 Reducing.adjustment.according.to.issued.credit.DFI 0
11 The.amount.of.adjusted.risk.on.DFI.(the.sum.of.lines.4,.5,.9.less.lines.7,.8,.10),.total: 48.214
Risk.on.securities.lending.transactions
12 Claims.on.securities.lending.transactions.(without.netting),.total: 0
13Adjustment.in.the.sum.of.monetary.value's.netting.(claims.and.obligations).on.securities.lending.transactions
0
14 The.amount.of.credit.risk.per.counterparty.on.securities.lending.transactions 0
15 The.amount.of.credit.risk.on.guarantee.securities.lending.transactions 0
16 Claims.on.adjusted.securities.lending.transactions.(the.sum.of.lines.12,.14,.15.less.line.13),.total: 0
Annual accounting (financial) statements (RAS)
105
1 2 3
Risk.on.credit.related.commitments
17 Nominal.value.of.the.risk.on.credit.related.commitments,.total: 30.310.169
18 Adjustment.regarding.the.use.of.credit.equivalent.factors 3.627.617
19The.adjusted.amount.of. risk.on.credit. related.commitments. (difference.between. lines.17.and.18),.total:
26.682.552
Capital.and.risk
20 Base.capital 9.875.431
21The.value.of.Balance.sheet.assets.and.off-balance.claims.at.risk.for.the.calculation.of.financial.leverage.ratios.(the.sum.of.lines.3,.11,.16,.19),.total:
87.403.966
Financial.leverage
22 Bank.financial.leverage.ratio.(N1.4),.bank.group.(N20.4),.percentage.(line.20./.line.21) 11.30
Signed.and.authorised.for.release.on.behalf.of.the.Management.Board.of.the.Bank:
Giuseppe.Giampietro Chairman.of.the.Management.Board.
Tatyana.Pavlycheva Member.of.the.Management.Board./
Head.of.Accounting,.Planning.and.Control.Group./.Chief.accountant
25.February.2020
Annual accounting (financial) statements (RAS)
106
CASH FLOW STATEMENT AS AT 01 JANUARY 2020 (PUBLISHED FORM)
Form.Code.by.OKUD.0409814.Quarterly.(Annual)
Lin
e N
o.
ItemCash flows for the reporting period,
RUB'000
Cash flows for the respective reporting period of the year
preceding the reporting year,
RUB'000
1 2 3 4
1 Net.cash.received.from.(used.in).operating.activities
1.1Funds. received. from. (used. in). operating. activities. before. changes. in.operating.assets.and.liabilities,.total,.including:
2.000.041 367.901
1.1.1 Interest.received 3.956.523 4.300.146
1.1.2 Interest.paid (1.598.759) (1.625.071)
1.1.3 Commissions.received 2.191.671 858.843
1.1.4 Commissions.paid (111.556) (117.179)
1.1.5Income.net.of.expenses.on.operations.with.financial.assets.measured.at.fair.value.through.profit.or.loss,.through.other.comprehensive.income
8.345 (8.600)
1.1.6 Income.net.of.expenses.on.deals.with.securities.at.amortised.cost – –
1.1.7 Income.net.of.expenses.on.foreign.currency.deals 511.211 (219.543)
1.1.8 Other.operating.income 179.151 311.274
1.1.9 Operating.expenses (2.894.845) (2.925.517)
1.1.10 Taxes.expenses.(reimbursement) (241.700) (206.452)
1.2Increase.(decrease).of.net.cash.from.operating.assets.and.liabilities,.total,.including:
(2.853.254) 678.561
1.2.1Net.increase.(decrease).on.obligatory.reserves.on.accounts.in.the.Bank.of.Russia
(68.852) (88.204)
1.2.2Net. increase. (decrease). on. financial. assets. measured. at. fair. value.through.profit.or.loss
– –
1.2.3 Net.increase.(decrease).on.loans.to.customers (9.324.690) (979.174)
1.2.4 Net.increase.(decrease).on.other.assets (395.790) 96.268
1.2.5Net.increase.(decrease).on.loans,.deposits.and.other.funds.of.the.Bank.of.Russia
1.374.373 611.125
1.2.6 Net.increase.(decrease).on.funds.of.other.credit.institutions 1.799.254 3.097.016
1.2.7Net. increase. (decrease). on. funds. of. customers. that. are. not. credit.institutions
6.666.693 (1.962.498)
1.2.8Net. increase. (decrease). on. financial. liabilities. measured. at. fair. value.through.profit.or.loss
– –
1.2.9 Net.increase.(decrease).on.issued.debt.liabilities (3.000.000) (130.643)
1.2.10 Net.increase.(decrease).on.other.liabilities 95.758 34.671
1.3 Total.for.Section.1.(line.1.1.+.line.1.2) (853.213) 1.046.462
2 Net.cash.received.from.(used.in).investment.activities
2.1Purchase. of. financial. assets. measured. at. fair. value. through. other.comprehensive.income
(7.391.954) (4.642.945)
2.2Proceeds. from. sale. and. redemption.of. financial. assets.measured.at. fair.value.through.other.comprehensive.income
7.400.980 4.608.540
2.3 Purchase.of.securities.measured.at.amortised.cost – 0
2.4 Proceeds.from.redemption.of.securities.measured.at.amortised.cost – –
Annual accounting (financial) statements (RAS)
107
1 2 3 4
2.5 Purchase.of.fixed.assets,.intangible.assets.and.inventories (289.315) (243.190)
2.6 Proceeds.from.sale.of.fixed.assets,.intangible.assets.and.inventories 125.567 108.702
2.7 Dividends.received – –
2.8 Total.for.Section.2.(sum.of.lines.from.2.1.to.2.7) (154.722) (168.893)
3 Net.cash.received.from.(used.in).financial.activities
3.1 Contributions.of.shareholders.(participants).into.share.capital – –
3.2Purchase. of. own. shares. (interest). repurchased. from. shareholders.(participants)
– –
3.3 Sale.of.own.shares.(interest).repurchased.from.shareholders.(participants) – –
3.4 Dividends.paid – –
3.5 Total.for.Section.3.(sum.of.lines.from.3.1.to.3.4) – –
4Impact.of.change.of.official.rates.of.foreign.currencies.to.the.rouble.set.by.the.Bank.of.Russia,.on.Cash.and.cash.equivalents
(214.066) 341.421
5 Increase.(usage).of.Cash.and.cash.equivalents (1.222.001) 1.218.990
5.1 Cash.and.cash.equivalents.as.at.the.beginning.of.the.reporting.year 5.298.048 4.079.058
5.2 Cash.and.cash.equivalents.as.at.the.end.of.the.reporting.period 4.076.047 5.298.048
Signed.and.authorised.for.release.on.behalf.of.the.Management.Board.of.the.Bank:
Giuseppe.Giampietro Chairman.of.the.Management.Board.
Tatyana.Pavlycheva Member.of.the.Management.Board./
Head.of.Accounting,.Planning.and.Control.Group./.Chief.accountant
25.February.2020
The. complete. text. of. the. annual. accounting.(financial). statements. (RAS). and. the. auditors’.report.is.available.in.the.relevant.sections.of.the.bank’s.website.www.bancaintesa.ru.
108
Details
FULL NAME
Banca.Intesa
SHORT NAME
Banca.Intesa
GENERAL LICENSE
General.Banking.License.No..2216.dd..May.06,.2015.
BANCA INTESA’S REQUISITES
Location and mailing address:..2,.Petroverigsky.Lane,.Moscow,.Russian.Federation,.101000BIK (Local Bank Identification Code):.. .044525922INN (Individual Taxpayer Number):.. .7708022300KPP (Taxpayer Record Validity Code):.. .770901001OGRN (Primary State Registration Number):.. .1027739177377SWIFT:.. .KMBB.RU.MMТеlephone:.. +7.(495).411-80-70Fax:.. .+7.(495).411-80-71REUTERS:.. .BCIRE-mail: info@bancaintesa.ru
Cover photo:
Matera,.European.Capital.of.Culture.2019
Intesa.Sanpaolo.is.a.Gold.Partner.of.the.project
Discover.Matera:.https://latuaitalia.ru/where-to-go/vyhodnye-v-matere/
Banca.Intesa
Annual.Report.2019
Minutes.of.the.Board.of.Directors.Meeting.No.2/2020.dd..March.3,.2020.
Minutes.of.the.Annual.General.Shareholders’.Meeting.No..1/2020.dd..April.01,.2020.
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